Aton blocks M&R’s planned Aveng takeover
Regulatory authorities have prohibited the deal, paving the way for Aton takeover
In another dramatic twist in the battle by German engineering group Aton to acquire control of Murray & Roberts, the regulatory authorities have prohibited M&R from proceeding with its attempt to get control of Aveng. News of the ruling by the takeover special committee (TSC) knocked Aveng’s share price to a record low of 8c as investors feared that without M&R’s R1bn bid, the outlook for heavily indebted Aveng looks grim. As part of the bid, M&R planned early redemption of Aveng’s bonds, which have a nominal value of R2bn. The M&R share price was slightly weaker on Thursday, but at R17.69 remains comfortably above Aton’s R17 a share offer.
The ruling by the TSC, which overturns a June decision by the takeover regulation panel (TRP) that the M&R-Aveng transaction could proceed, leaves the way clear for Aton to proceed with its takeover offer without the distraction of M&R’s bid for Aveng running concurrently. It will also save Aton from incurring the additional costs related t...
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