Aton scrambles to avert M&R-Aveng deal
Competition Tribunal to decide how much of shareholder’s 44% stake can be used in vote, while Murray & Roberts has applied for restriction of 30%
The critical Murray & Roberts (M&R) shareholders’ meeting to vote on a possible tie-up with Aveng, planned for next Tuesday, will go ahead irrespective of the outcome of the Competition Tribunal hearing on Friday, said Ed Jardim, group investor and media executive at M&R. The tribunal is due to consider if Aton, which opposes the Aveng deal, can vote all of its 44% stake in M&R. The M&R board has applied to the tribunal to restrict Aton’s vote at the meeting to 30%. On Wednesday morning, the Aveng share price plummeted 50% to a low of 13c. Small-cap analyst Anthony Clark of Vunani Securities said the construction sector shares had lost so much value they were no longer being covered by analysts. At 13c, Aveng’s market capitalisation is just R54m. Five years ago it was R12.5bn and its all-time high was R40bn. In its application to the tribunal, M&R said its proposed tie-up with Aveng was time-sensitive "due to the worsening financial position of Aveng". Aton countered that the urgenc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.