Picture: ISTOCK
Picture: ISTOCK

Aveng’s share price jumped as much as 32% to R1.20 after Murray & Roberts proposed an all share acquisition on Friday.

At Friday’s share prices, Murray & Roberts had a market capitalisation of R6.7bn while Aveng’s was R454m.

Murray & Roberts said it would value Aveng at about R1bn, assuming it manages to raise at least R300m in a rights issue it proposes to hold.

The proposed acquisition of Aveng comes shortly after Murray & Roberts turned down a R15 per share hostile takeover bid by German investor Aton.

“The board of directors of Murray & Roberts will be engaging with Aton, as a significant shareholder, regarding the merits of the potential transaction in order to procure its support,” the company said in Friday’s statement.

Aveng warned shareholders that no formal offer had been received from Murray & Roberts yet.

Rationales for the deal given by Murray & Roberts included combining Aveng’s Australian subsidiary McConnell Dowell and its mining contracting business, Moolmans, with its oil and gas and underground mining divisions.

Please sign in or register to comment.