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PIC increases Murray & Roberts stake amid takeover battle

After opposing ATON’s takeover bid.
The PIC has increased its stake to 20.16%, from 15.34%. Picture: Moneyweb

Africa’s biggest pension fund Public Investment Corporation (PIC) has increased its stake in Murray & Roberts to 20% after opposing a takeover offer for the South African engineering group.

Murray & Roberts (M&R) said on Tuesday that PIC had increased its stake to 20.16%, from 15.34%, a day after PIC rejected a buyout offer for M&R from Germany’s ATON, saying it “materially undervalues” the South African group.

PIC is Murray & Roberts’ (M&R) second biggest shareholder but its move may not thwart ATON’s ambitions of getting a 50% plus one share majority as other shareholders could sell their shares.

ATON, which already owns more than a third of M&R, did not immediately respond to a request for comment.

It made its buyout offer last month, at R15 per share, valuing M&R at nearly $600 million.

M&R said last week that an independent report had showed that a fair offer for the company would be as much as R22 per share.

The German investment vehicle has increased its stake to 39.8% from 33% since its bid was announced, after obtaining shares from two top 10 shareholders, including Investment management company Allan Gray, M&R’s third largest shareholder.

ATON requires just over 10% to achieve it’s minimum requirement for a potentially successful bid.

Some of the top 10 shareholders in M&R include Sanlam and Dimensional Fund Advisors with 4.93% and 4.72% stakes respectively, according to M&R’s shareholder analysis. They have declined to comment.

Old Mutual was the first to publicly reject the offer saying that it is “below what we believe is fair value.”

M&R’s shares closed up 1.4% on Tuesday at R15.28 .

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Good news let the govt. wackers catch the falling knife. this CO is going down due to unions encouraging pisspoor work ethic and blatant theft of company materials and time, feel sorry for the old guard who had a good thing going, but it is difficult to fart against thunder
Holcim were lucky to get out of their mess with the BE partner and Pic.
Cyril is running around the UK drumming up investment meanwhile he and his Cabal go out of their way to crush once great businesses back home

End of comments.

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