Australian mining services company MACA has received an all-cash buyout offer of A$350m ($243.1m) from its rival Thiess Group Investments.
The two parties also signed a related bid implementation deed.
In the conditional off-market proposal, Thiess agreed to offer MACA’s shareholders A$1.025 ($0.71) in cash for each share held.
This is a 28.1% premium to MACA’s last traded price on 25 July 2022.
Jointly owned by CIMIC and US hedge fund Elliot Management, Thiess looks to support its diversification plan across commodities, services, and geographies with the takeover.
Thiess executive chair and CEO Michael Wright said: “We believe our offer is an attractive opportunity for MACA shareholders as it provides certainty of cash, a strong premium and an ability to achieve liquidity for their entire MACA shareholding.
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“Thiess also looks forward to supporting MACA to meet the evolving needs of its client base through promoting further investment in low emission and technology-led solutions.”
MACA’s directors have recommended that the company’s shareholders accept the offer if there is no superior proposal. The acceptance is also subject to an independent expert determining that the offer is fair and reasonable to shareholders.
MACA non-executive chairman and co-founder Geoff Baker said: “Thiess approached us with a compelling offer at an attractive price which represents a strong premium to recent trading prices.
“The board of MACA believes that Thiess is the right partner for the MACA business, with similar values and a desire to enhance services to our clients, and to carry on the community and charity engagement initiatives of which MACA is so proud.”
The proposal is subject to clearance of the Australian Competition and Consumer Commission, and the Australian Foreign Investment Review Board (FIRB), among others.
MACA caters to the mining, infrastructure, and construction sectors. The firm’s services to the mining industry include drilling and blasting; loading and hauling; and materials handling.
Thiess is engaged in providing open-cut and underground mining services in Asia, Australia, and the Americas.