MACMAHON HOLDINGS
CIMIC, formerly Leighton Holdings, has made a takeover offer for Macmahon Holdings, offering 14.5¢ in an unconditional bid. That’s a 30% premium to Macmahon’s previous traded price and values the business at $170 million, a near 20% discount to the company’s net tangible assets.
We might expect such a modest bid to be met with resistance or a rival bidder but this might be an exception. Still recovering from near collapse, Macmahon has been through several managers. The
board has advised investors to do nothing but it could make sense to sell while commodity prices are high. As CIMIC already has a 20% equity stake in the business, a rival bidder is unlikely. CIMIC itself cannot increase