Murray & Roberts: A spoke in Aton’s wheel
The proposed merger with Aveng adds a complication to Aton’s offer for M&R shares — an unwelcome one, Aton says
The hard work is just beginning over a proposed all-share tie-up between Murray & Roberts and cash-strapped rival Aveng. This includes "to-be-issued share capital" of Aveng and the early redemption of R2bn in convertible bonds, maturing in 2019, owed to Aveng’s funders. Murray & Roberts shareholders will hold a general meeting on June 19 to vote on the proposal, in terms of which the engineering and construction company will take care of nearly all Aveng’s debt of R3.8bn.The merger proposes the combination of the Murray & Roberts oil and gas and underground mining units with Aveng’s McConnell Dowell and Moolmans businesses, which operate mainly in Australasia and Africa. Coronation Fund Managers, which holds 20.7% of Aveng, says it supports a tie-up. "There should be significant synergies between McConnell Dowell and Clough by combining these two businesses and reducing centre costs," Quinton Ivan, head of SA equity research, says. But it puts a spoke in an earlier and bitterly cont...
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