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MACMAHON HOLDINGS LIMITED — M&A Activity 2008
Sep 17, 2008
65291_rns_2008-09-17_4e962cba-8818-493e-8253-0ff5b30bde32.pdf
M&A Activity
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Thursday 18 September 2008
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ASX Announcement
MACMAHON WILL NOT DECLARE OFFER FREE OF CONDITIONS
Macmahon Holdings Limited (“Macmahon”) announced today that it will not declare its takeover Offer for Ausdrill Limited (“Ausdrill”) free of conditions tomorrow.
As a result, the Offer will lapse unless the level of acceptances increases to more than 50 per cent of Ausdrill shares during the last seven days of the offer period, which is due to close on Monday, 29 September. Macmahon believes that this is now unlikely.
Chief Executive Officer, Nick Bowen, commented that the Board considers that the Offer of 1.65 Macmahon shares for every Ausdrill share remains a compelling proposition for Ausdrill shareholders.
“The combination of Macmahon and Ausdrill would create an outstanding diversified mining contracting and civil construction company,” he said.
“The Offer delivers a value of more than $3.00 per Ausdrill share, a price well in excess of the highest price at which Ausdrill has ever traded, at a time of great uncertainty in financial markets.
“Unfortunately our view of the value creation opportunities available to both sets of shareholders is not shared by the Ausdrill Board.
“The challenge is now there for Mr Sayers and the Ausdrill Board to deliver a share price equivalent to our Offer.”
“The outlook for Macmahon remains extremely positive and the record full year result highlights the strength of this business. Our focus remains on continuing to grow this business while delivering sustainable profits. This ambition is not dependent on the acquisition of Ausdrill,” Mr Bowen said.
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For more information, please contact:
Media contact: John Phaceas Investor contact: Matthew Wright
Porter Novelli Mobile 0411 449 621 Investor Relations Mobile 0432 897 837
Macmahon Holdings Ltd ABN 93 007 634 406
Level 3 263 Adelaide Terrace Perth WA 6000 PO Box 198 Cannington WA 6987 Telephone: (08) 9365 1111 Facsimile: (08) 9365 1186 Web: www.macmahon.com.au Email: [email protected]