https://www.engineeringnews.co.za

M&R independent board issues fair value price range

4th April 2018

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

The R15-a-share offer that German investment firm Aton is proposing for JSE-listed Murray & Roberts (M&R) falls well short of what the independent board believes the company is valued at.

The M&R independent board appointed to review the planned offer reported on Wednesday that it had received a valuation report from independent expert BDO South Africa, following which it had determined that a fair value price range for control of M&R was between R20 a share to R22 a share.

Following the BDO’s valuation report, the independent board further affirmed its view that Aton’s proposed offer “materially” undervalued M&R and said it would strongly recommend that shareholders did not accept the offer.

The proposed offer was announced last week and is expected to open on Friday.

M&R previously held discussions with Aton about possibly combing that company’s Redpath Mining with M&R’s underground mining business platform. However, the independent board was sceptical about such a combination, saying last week that it presented “limited strategic rationale” at the current time and that the current combined market share of these businesses might reduce after a possible combination.

M&R traded at R14.22 a share on Wednesday.           

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.482 0.539s - 155pq - 2rq
Subscribe Now