German family-owned business Aton has made a formal offer to Murray & Roberts (M&R) shareholders to acquire all shares in M&R at R15 a share.
The company on Tuesday said it had already acquired a further 3.1% stake in M&R from a top ten shareholder and that it will soon buy a further 6.5% interest in M&R from another top ten shareholder Allan Gray.
This will see Aton hold a 39.6% stake in M&R, which translates to about 39.8% of the voting rights.
Aton on Monday posted a circular to M&R shareholders providing further detail on its offer to acquire a majority in M&R.
“The fact that we have been able to secure agreements with two top ten shareholders, for our cash offer of R15 a share, underpins our contention that our offer represents a significant value lock opportunity for shareholders,” Aton CEO Thomas Eichelmann said on Tuesday.
He added that the company believes Aton’s proposition and proven record in the mining industry will be beneficial not only to the shareholders of M&R but also to other stakeholders.
Eichelmann stressed that Aton’s interest in M&R is of a long-term nature.
Aton hopes to obtain a minimum of a 50%, plus one share majority in M&R.
M&R, in a separate statement, on Tuesday reiterated the recommendation by an independent board that shareholders take no action with regard to the R15 a share offered by Aton as it “materially undervalues” M&R. The board had previously said a fair value price range for control of M&R would be between R20 and R22 a share.