German investment house ATON raised its takeover offer for Murray & Roberts by around 13% to $426 million on Friday, attempting to secure investor backing after the South African builder struck a deal of its own last week.
The offer underlines ATON’s determination to expand in Africa‘s most industrialised economy, whose prospects have improved since Cyril Ramaphosa took over as president promising to root out corruption and push through business-friendly policies.
The decision comes after ATON – led by German investor Lutz Helmig – raised its stake in Murray & Roberts to 44% at R17 per share, triggering a rule under South African capital market regulations to offer all shareholders the same amount.
The revised offer values Murray & Roberts at R7.6 billion ($610.31 million), based on a total issued shares of 445 million.
That would value the roughly 70% of shares ATON has acquired or is seeking to buy since it began its pursuit of Murray & Roberts at around $426 million.
ATON first made an offer in March at R15 per share, valuing the company at roughly around R6.7 billion. At the time ATON held a roughly one-third stake in Murray & Roberts.
That offer was rejected by Murray & Roberts’ board and its second biggest shareholder, the Public Investment Corporation, as “opportunistic” and poor value for shareholders.
The new bid comes a week after Murray & Roberts said it had started talks on an all-share merger with local rival Aveng. ($1 = 12.4527 rand)