M&R deal passes milestones
Construction and engineering group Murray & Roberts (M&R) on Friday reached two important milestones in its move to buy the remaining shares in Australian firm Clough that it did not already own.
The proposed R4-billion acquisition, which remained on track for conclusion on December 11, would see M&R buy a further 38.4% stake in Clough through a scheme of arrangement between Clough and its shareholders.
The JSE-listed group proposed to buy the remaining shares at A$1.46 a share, comprising a A$1.32 cash payment by M&R and the payment by Clough of a dividend of A$0.14 a share. Shareholders able to capture the full benefit of the franking credit associated with the special dividend may realise an additional A$0.06 a share.
Independent expert, Grant Samuel and Associates, determined that the scheme of arrangement was in the best interest of Clough shareholders, while the scheme booklet had been registered with the Australian Securities and Investment Commission after the Federal Court of Australia approved its release.
The acquisition remained subject to the fulfilment of certain conditions precedent, including Clough and M&R shareholder approval. Shareholders would vote on the deal at the M&R annual general meeting on November 6 and at the Clough shareholders meeting on November 15.
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