The West

Sembawang pulls Macmahon offer

Singapore-based Sembawang Engineers and Constructors has pulled its offer to acquire Macmahon's construction division for $38 million.

The move follows Macmahon's rejection of a 24-hour deadline set by Sembawang for the offer to be accepted.

Sembawang last week offered to buy the division outright for $38 million or along similar terms as Leighton's $20 million rival offer for the company's major projects but with a $5 million sweetener.

Macmahon has always insisted it had already entered a binding, exclusive sales agreement with Leighton, also a major shareholder of the company, which prevented it from entering discussions with Sembawang about its offer. It also noted the Sembawang's was "unsolicited, non-binding, incomplete and highly conditional".

Macamhon said it would make a full statement on the matter shortly.

Shares in Macmahon were off half a cent, or 1.92 per cent, to 25.5 cents at 7.50am.

The West Australian

Latest News From The West

The Jamie’s Italian chain and the Chophouse grill in Cloisters Square have been excluded from an agreed sale of eateries and bars owned by the collapsed Keystone Group.

Popular videos