Aveng’s share price fell 13% to 33c on Tuesday following an update on its negotiations with Murray & Roberts (M&R). The tone of Aveng’s statement was that while it would have liked to have been bought by M&R, the deal was inevitably going to be trumped by German investment group Aton’s hostile takeover of M&R. Aveng reminded its shareholders that Aton, whose stake in M&R has risen to nearly 44%, "has also previously released a public statement stating that it will not support the M&R transaction". At 33c per share, Aveng’s market capitalisation was just R137.5m. M&R was trading at R17.06, giving it a market cap of R7.6bn. Aveng advised shareholders that it intends to proceed with a proposed rights offer in which it hopes to raise up to R500m. "M&R is supportive of Aveng proceeding to implement the proposed rights offer, irrespective of whether the M&R transaction proceeds or not," Tuesday’s statement said. The construction group said it was also continuing with its previously announ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.