Aton share deal adds to M&R woes
The German group lifts its stake to 39.8%, increasing pressure on Murray & Roberts to get shareholder approval for proposed merger
German-based conglomerate Aton has increased its shareholding in Murray & Roberts (M&R) to 39.8% in buying an additional 6,600 shares in the group. The share purchase adds to the pressure facing M&R to get the necessary shareholder backing for its proposed tie-up with Aveng. The M&R board will have to secure approval from 50% plus one shareholder at not one but two meetings if it wants to finalise the Aveng deal. The deal has been structured so it requires only an ordinary resolution. In addition, any tie-up will have to get approval from the competition authorities, which might be time consuming given M&R’s history with the Competition Commission. This is designed to give the shareholders an opportunity to declare whether or not they believe the transaction represents a "frustrating action" by the M&R board. Depending on the outcome of this vote, which will be held on June 19, shareholders will then get an opportunity to vote on the transaction. Section 126 of the act prohibits the...
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