MacMahon denies Sembawang allegations
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MacMahon Holdings denies it received an offer from an Indian-based firm to buy its construction business before entering into a sale agreement with its major shareholder Leighton Holdings.
Sembawang Australia - a wholly-owned subsidiary of engineering and construction group Punj Lloyd - says it has instructed its lawyers to file a suit against MacMahon after being denied access to conduct due diligence on the Australian company.
Sembawang has offered to buy Macmahon's construction operations for $25 million, but MacMahon has said it cannot provide Sembawang due diligence access without the permission of Leighton.
Leighton and Macmahon executed an asset purchase agreement in December, as MacMahon looks to divest its construction business and become a dedicated full service mining contractor.
Sembawang chief executive Richard Grosvenor said in a statement issued at the weekend that Sembawang had approached MacMahon on November 26 about joint ventures and the potential purchase of its construction business.
But MacMahon has denied the allegation, saying the only offer it had received from Sembawang was its unsolicited, non-binding proposal received on January 3.
"At the time of this announcement, Macmahon has not received any formal notice of legal proceedings having been initiated against it by Sembawang," MacMahon said in a statement on Tuesday.
The company is continuing preparations for an extraordinary general meeting to be held in February, where shareholders will vote on the deal with Leighton.
MacMahon shares were steady at 29.5 cents at 1027 AEDT.