Murray & Roberts sets price tag after rejecting Helmig bid – sees fair value at R9.8bn

By John Bowker

(Bloomberg) – Murray & Roberts Holdings Ltd. sees a fair value for the South African engineering and construction company at as much R9.8 billion ($821 million), setting a price-tag for Germany’s Helmig family after rejecting an offer last week.

Murray and Roberts Building, 10 Skeen Boulevard, Bedfordview, South Africa.

After reviewing an independent report by BDO Corporate Finance Proprietary Ltd., Johannesburg-based Murray & Roberts values the company at between R20 and R22 a share, it said in a statement Wednesday. That compares with a 15-rand offer made by Aton GmbH, the Helmig’s investment group, which already owns a 33 percent stake.

The stock jumped immediately after the announcement before paring gains to trade at R14.28 rand as of 3:04 p.m. in Johannesburg. That values the company at R6.2 billion.

The move puts the ball back in Aton’s court. The group, which has investments in mining, engineering, aviation and health technology, is making a second attempt at a deal after talks to merge M&R’s underground mining unit with an Aton business broke down two years ago.

On Thursday, Aton said it had agreed to a deal with Cape Town-based money manager Allan Gray to buy shares at R15 each that will boost its shareholding to almost 40 percent. In a note to clients dated March 1, analysts at SBG Securities valued the company at R19.80.

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