Spanish-controlled engineering group CIMIC has amended its offer to acquire Queensland-based mining contractor Sedgman Limited that values the company at A$243 million ($174.3 million), said Sedgman in an update to the Australian Securities Exchange Thursday.
Sedgman last month applied to the Australian government's Takeovers Panel saying that CIMIC Group planned to reduce its A$1.07/share cash offer to take account of any tax relief on future dividend payments to Sedgman shareholders.
Sedgman asked the Takeovers Panel to intervene and make orders for CIMIC to unwind its Sedgman share purchases since January 13, and to correct its bidder's document relating to its offer price.
The Takeovers Panel said Wednesday it had turned down Sedgman's request to intervene because CIMIC Group had released January 28 an amended bidder's document stating the company will not deduct the value of tax relief on Sedgman share dividends from its offer price.
CIMIC SHAREHOLDING
Sedgman added in its statement: "CIMIC Group currently holds 45.44% voting power in the company [as of February 1], up from the 36.99% it held prior to announcing its intention to launch the offer on January 13."
Sedgman has advised its shareholders not to take any action with regard to CIMIC's takeover offer.
Separately, Sedgman said in its update that it expects to report a net profit after tax of A$7.5 million to A$8 million for the half-year period ended December, and due to be announced on February 11.
Sedgman has provided contract mining services to a number of Australian coal projects including Idemitsu's Boggabri coal mine in New South Wales, and Cockatoo Coal's Baralaba mine in Queensland.
CIMIC Group was formerly known as Leighton Holdings until last April when it changed to the present company name which stands for Construction, Infrastructure, Mining and Concessions, according to CIMIC's website.
CIMIC said that if its takeover was successful it wanted to restructure Sedgman's board of directors; review its dividend and capital management strategies; continue to diversify the company across commodity groups; and retain current employees except in cases where they may no longer be required.
Sedgman has about 227 million issued shares and CIMIC's offer at A$1.07/share values Sedgman at A$243 million.
The offer price represents a premium of 35.4% to the share price of Sedgman on January 12, the day before the takeover was announced by CIMIC Group.
Sedgman's share price was trading at A$1.075/share toward the end of Thursday trade on the ASX.
