Punj Lloyd arm bids for construction biz of Australian firm
New Delhi: Leading infrastructure firm Punj Lloyd Thursday said its subsidiary Sembawang Engineering and Constructors Pte Ltd has made an offer to acquire the construction business of Australia's Macmohan Holdings Ltd.
The offer has been made in two parts through a wholly owned subsidiary, Sembawang Australia Pty Ltd, the company said in a statement.
"Sembawang has been eyeing Macmahon's construction business for over four years now and believes that the time is right to make this offer given the fit in strategies for both companies," Sembawang's President and CEO Richard Grosvenor said in the statement.
Last month, Macmohan Holdings had announced it will sell majority of its construction businesses to Leighton Holdings -- its largest shareholder with 24.2 percent stake -- for around AUD 20 million (approx. USD 21 million).
Sembawang today said it is willing to offer AUD 25 million (approx. USD 26.25 million) to Macmohan for the same business.
According to Sembawang's offer, it intends to purchase Macmohan's construction businesses as "going concerns or as a separate standalone offer" in first part.
For the second part, it will make a "counter proposal to the asset purchase agreement made by Leighton Holdings Ltd, on identical terms, for an additional consideration of AUD 5 million."
The company further said both these separate offers are subject to satisfactory due diligence and Sembawang Board approval by January 31, 2013.
Sembawang, a subsidiary of Punj Lloyd group, is one of the leading engineering, procurement and construction firm in the South-east Asia. In 2011-12, the company had clocked a revenue of USD 443 million and had an order backlog of USD 298 million.
Macmohan Holdings is a leading Australian contract mining and construction company and is listed on the Australian Securities Exchange (ASX). The company's shares closed today at AUD 0.285 apiece on the ASX, up 11.76 percent from their previous close.
Meanwhile, shares of Punj Lloyd closed 0.57 percent up at Rs 61.65 apiece on the BSE.