Business Line reported that Sembawang Engineers and Constructors Pte Ltd, which is a subsidiary of Punj Lloyd Ltd, has planned to buy the construction businesses of Macmahon Holdings Ltd of Australia through its wholly owned subsidiary Sembawang Australia Pty Ltd.
For Sembawang, a successful end to its bid to acquire the construction business of Macmahon, an Australian contract mining and construction company, would bring to fruition its plans to enter the construction activity in that country.
PLL said that it intends to make a two part offer through the subsidiary for acquiring the construction businesses. While Part A would consist of purchasing Macmahon’s construction businesses as going concerns or as a separate standalone offer, part B would consist of a counter proposal to the Asset Purchase Agreement made by Leighton Holdings Ltd, on identical terms, for an additional consideration of AUD 5 million.
Both offers were subject to the satisfactory due diligence and approval by Sembawang board by the end of this month.
Mr Richard Grosvenor President and CEO of Sembawang said that his company had been eyeing Macmahon’s construction business for more than four years and felt that the time was right to make the offer given the fit in strategies of both companies with Macmahon planning to exit construction business in Australia even as his company was eyeing an entry into this activity in that country.