Investors dive into Murray & Roberts as Germany's Aton makes takeover bid

Johannesburg – Shares in Murray & Roberts jumped by 47% in early afternoon trade on Monday, after a proposed bid was announced for the SA engineering and mining contractor by German investment holdings company Aton GmbH.

Shares in Murray & Roberts [JSE:MUR] were up 48.34%, trading at R14.30 per share on Monday at 12:30.

Aton currently owns 29.9% of the group's share capital.

Aton’s proposed offer includes first buying 13.7 million additional shares. If completed, this would raise Aton's holdings in Murray & Roberts to approximately 33.1%.

The German firm intends to make the firm offer at R15 a share to all the group's shareholders, Murray & Roberts said in a stock exchange announcement on Monday.  This is over 50% above the JSE-listed group's closing share price on Friday. 

“The offer provides M&R shareholders with an opportunity to realise value in cash and to divest of their M&R shares at a premium, which is also attractive considering the low trading volumes in M&R shares on the JSE,” Aton said in a statement. 

Murray & Roberts’ fund manager Allan Gray has supported Aton’s decision to acquire the shares, stated the media statement.

Allan Gray has given Aton an "irrevocable undertaking" to sell the 10.9% of the group's shares it owns. If Aton buys these shares, it would then own 44% of Murray & Roberts' share capital. 

An independent board of Murray & Roberts will, however, first review Aton’s proposition.

"Once the independent board has concluded its review of the proposed Aton offer, a further announcement will be made," it said. 

Shareholders have been advised to wait on the correspondence of the board before they accept any offers.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

ZAR/USD
17.47
(-0.12)
ZAR/GBP
22.86
(-0.39)
ZAR/EUR
20.68
(-0.47)
ZAR/AUD
12.52
(-0.14)
ZAR/JPY
0.16
(-0.17)
Gold
1934.13
(+0.65)
Silver
25.93
(+1.13)
Platinum
939.00
(+1.07)
Brent Crude
45.32
(+2.09)
Palladium
2151.00
(+0.82)
All Share
57091.10
(-0.57)
Top 40
52793.15
(-0.63)
Financial 15
10103.00
(-0.36)
Industrial 25
75705.91
(-0.66)
Resource 10
58610.52
(-0.65)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 980 votes
It depends on how the funds are used.
74% - 6507 votes
No. We should have gotten the loan elsewhere.
15% - 1347 votes
Vote