I think it just wants more cash…
It says it’s open to a higher offer but at the same time says it won’t show NRW’s proposed financier its’ books due to NRW being a competitor (I wonder how that worked out with Theiss?)
It’s all looking a bit like some kind of strategy game play as well to me now Macquarie has chipped in.
CIMIC’s has a pattern of trying to execute or take competitors by a number of means so I guess in this instance it might try to start up a bidding war?
And Yorkie21 I still think one of the reasons NRW wants MACA is to give it more equipment to service new contracts it is trying to win - especially given the supply chain issues for buying new.
But how much of MACA’s fleet is free and younger than ten years old?
Mining contractor is now being pursued by two suitors. Credit: Supplied
Takeover target MACA has rejected claims NRW Holdings’ “superior” $375 million counter offer was given short shrift.
In a belated response to NRW’s disclosure of the offer on Thursday, MACA on Friday dismissed the suitor’s assertion that further talks had been ruled out.
The mining contractor said that “notwithstanding the concerns in relation to the NRW indicative proposal”, it “considered there was a basis for further discussion, and would have welcomed such discussion”.
“The MACA board did not state (as alleged in the NRW announcement) that ‘MACA does not propose to engage in further discussions’,” it said.
Disclosing the bid and MACA’s rejection on Thursday, NRW chief executive Jules Pemberton said the group was “disappointed” the target company was “not willing to entertain” its $1.085-a-share cash and stock offer.
Three weeks ago, MACA agreed to accept a $1.025 cash bid from the privately owned Thiess, which is keen to reduce its exposure to coal mining on the east coast by expanding deeper into WA’s gold sector.
In its response on Friday, MACA said its board continue to prefer Thiess’ all-cash offer, noting that NRW was proposing to pay only half of its consideration in cash., with the balance payable in shares that would fluctuate in value.
It said also that NRW had still to finalise its funding for the offer and had underplayed the conditions around its bid.
NRW has been a notable acquirer in recent years, bulking up with Golding group for $85m in 2017, BGC Contracting for $116.5m in 2019 and the listed engineering group Primero for $100m last year.
NRW shares were 9¢ lower at $2.29 as at 10.05am, while MACA was 4.2¢ higher at $1.0525.
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