Sembawang Engineers and Constructors, the Singapore-based subsidiary of Punj Lloyd, has made an offer to buy a part of the construction business of Australia-based Macmahon after the latter rejected its bid acquire the entire construction business.
Sembawang has given Macmahon time till Tuesday evening to decide on its offer for the part business excluding rail operations.
It has also increased the offer to buy the part business from Australian $20 million (`115 crore) to A$25 million (Rs144 crore).
The offer is A$5 million more than what was offered in December by Leighton Holdings, a shareholder of Macmahon.
“Sembawang’s proposal is for completing a transaction and to establish a process which will allow Sembawang to conduct due diligence in respect of Macmahon to determine if the transaction can be agreed upon,” said the company in a notice to Macmahon.
This notice comes three days after Sembawang withdrew its offer of $38 million to buy all of Macmahon’s construction business as its first, or Part A, offer.
The offer was rejected by Macmahon, saying it was “unsolicited, non-binding, incomplete and unconditional proposal dated January 3,” according to Australian media reports.
Rejecting the Sembawang proposal, Macmahon said it did not provide details as requested by its Board, uncertainty and risk of completion, besides “Sembawang’s inconsistent conduct, including its breach of normal commercial confidentiality”.
However, Sembawang had issued statement, saying details could only be provided after Macmahon allows due diligence of its assets.
Sembawang, after having a tough run between 2009 and 2011, turned around in 2012 and is expected to post profits this year, too. It contributes 20% to the topline and 25% to the bottomline of Punj Lloyd.