Punj Lloyd arm plans to buy Australian co Macmahon’s construction biz

Friday, 4 January 2013 00:01 - - {{hitsCtrl.values.hits}}

COIMBATORE: Sembawang Engineers and Constructors, which is a subsidiary of Punj Lloyd (PLL), has planned to buy the construction businesses of Macmahon Holdings of Australia through its wholly owned subsidiary Sembawang Australia.

For Sembawang, a successful end to its bid to acquire the construction business, of Macmahon, an Australian contract mining and construction company, would bring to fruition its plans to enter the construction activity in that country.

In a communication to the stock exchanges, PLL said that it intends to make a two-part offer through the subsidiary for acquiring the construction businesses.

While part A would consist of purchasing Macmahon’s construction businesses as going concerns or as a separate standalone offer, part B would consist of a counter proposal to the Asset Purchase Agreement made by Leighton Holdings, on identical terms, for an additional consideration of A$ 5 million.

Both offers were subject to the satisfactory due diligence and approval by Sembawang board by the end of this month.

Sembawang President and CEO Richard Grosvenor, said his company had been eyeing Macmahon’s construction business for more than four years and felt that the time was right to make the offer ‘given the fit in strategies of both companies’ with Macmahon planning to exit construction business, in Australia even as his company was eyeing an entry into this activity in that country.