Aveng shares soar as Murray & Roberts makes a move
M&R's offer to Aveng comes after it turned down a hostile approach from Germany's Aton
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 ...
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.