Sembawang Offers $38m for Macmahon Construction Business

Australia’s Macmahon Holdings Limited (ASX:MAH) confirmed Thursday it has received a revised, two part proposal to acquire either a portion or all of its Construction Business from Sembawang Engineers and Constructors Pte Ltd (Sembawang).

Sembawang first announced it had offered the company $25 million last week, putting them in competition with Macmahon’s largest shareholder Leighton, who already owns 24 per cent of the company.

The first offer was conditional on Sembawang conducting due diligence, but Macmahon denied the company access because of an agreement that was already in place with Leighton Holdings.

The reason for Macmahon to sell its construction business is its goal to shift the company’s focus towards becoming a fully fledged mining contractor.