WA construction group MACA has knocked back NRW Holdings’ $375 million merger proposal saying it does not consider it as superior to the Thiess takeover offer.
“NRW has today received correspondence from MACA that it does not consider the merger proposal as superior to the current conditional Thiess takeover offer and does not propose to engage in further discussions in respect of the Merger Proposal in the form presented,” NRM said in an ASX statement.
NRW managing director Jules Pemberton said he was “disappointed” by the outcome.
“NRW believed it was uniquely positioned to offer attractive value for all MACA shareholders and, importantly, the benefits of continued exposure to MACA’s business as part of a larger and diversified provider of contract services to the resources, infrastructure and energy sectors across Australia.”
Thesis put a $350 million takeover bid on the table earlier this month. A cash takeover offer worth $1.025 per MACA share will close on September 12, unless extended.
NRW Holdings confirmed it approached MACA with a confidential non-binding indicative proposal on August 11.
Under the civil contracting and mining services company’s proposal, the two companies would merge through a combined cash and share deal via a scheme of arrangement.
NRW proposed to acquire all MACA’s shares for an implied consideration of $1.085 per share.
“NRW views the merger proposal represented a compelling value proposition for all MACA shareholders, valuing the equity of MACA at $375 million,” NRW said.
MACA’s and NRW’s shares were placed in trading halts this afternoon before the announcement.