Murray & Roberts says ATON buyout offer below fair value

M&R assesses second offer by ATON.
The offer comes from German company ATON, who already owns a third of M&R. Picture: Moneyweb

Construction group Murray & Roberts, currently the subject of a takeover bid by Germany’s ATON, said on Wednesday that an independent report showed that a fair offer for the company would be as much as R22 per share.

M&R renewed its call to shareholders to not take action regarding the proposed offer by ATON, which is expected to open on Friday saying that the offer of R15 per share “materially undervalues Murray & Roberts based on its prospects and is opportunistic”.

M&R, which last month rejected ATON’s buyout offer which values the engineering and construction company at nearly R7.13 billion, said on Wednesday that R20 to R22 per share was fair value based on a report that assessed the offer.

ATON, which already owns a third of M&R, made a buyout offer of R15 per share last month.

Last week ATON bought 13 671 480 ordinary shares in the construction firm and also agreed to buy a further 29 005 926 shares from investment management company Allan Gray, M&R’s third largest stakeholder, bringing its stake to 39.6%.

ATON, with a diverse portfolio of investments in the mining, engineering, aviation and health technology sectors, is making its second attempt at a deal after a previous approach failed in 2016.

COMMENTS   3

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

where will this take over, leave retail investors. if it materialise

I thought even retail investors will be able to sell their shareholding at R15/share. Talk to your broker. I think the price is fare one but obviously the Board is trying to squeeze more out

Quite peculiar, perhaps not unexpectedly so given their appetite for short term profit how quickly Allan Gray got onto the bandwagon to sell their shares in M&R for R15 per share. Maybe it is just too much expected that AG would also have done their sums and arrived at an ‘under-value’ evaluation. Just another indication that AG want to get out of the construction sector as quickly as possible!

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: