MACA stock, which traded above $2 during the 2017 mining boom, closed at 80¢ per share on Monday. Its shares jumped 23% on Tuesday to trade at 98¢ a share.
The mining services group’s board of directors has recommended that shareholders accept the offer if an independent expert concludes that the proposal is “reasonable” for shareholders and has signed a deed implementing the offer.
MACA, which was founded in WA in 2002 and listed on the Australian Stock Exchange in 2010, was one of the members of a pressure group known as Australian Owned Contractors, which lobbied for the inclusion more local businesses in major infrastructure projects. .
Thiess was previously a wholly owned subsidiary of CIMIC (formerly known as Leighton Holdings.) CIMIC sold a 50% stake to Elliott Management in 2020 amid pressure to raise after billions of dollars impairments.
Thiess, which reported net income of $283 million for the year ending December, will pay for the proposed acquisition by issuing shares to CIMIC and Elliott in return for payments of approximately $356 million to cover the cost of the takeover, which includes the conversion of 5.9 million MACA performance rights issued to employees into shares.
MACA had just over 9,000 shareholders at the end of August 2021, including one individual shareholder, Ken Kamon, who held 6% of the company.
The largest institutional shareholders are Samuel Terry Asset Management, which held a 5.1% stake in mid-July, and Dimension Fund Advisors, which reported a 6.1% stake in May 2021.
Elliott has the option of selling its stake back to CIMIC in the next few years. CIMIC and Elliott could also resurrect plans to float Thiess on the Australian Securities Exchange.
CIMIC was delisted from the ASX in May after Spanish construction giant Grupo ACS launched a hostile $1.5bn takeover bid for the remaining stake it did not already hold in the group of construction.
Under ACS ownership, CIMIC has aggressively acquired businesses, snapping up contractors Sedgman and UGL and real estate group Devine in recent years. He also tried to buy Macmahon Holdings in 2017.
A successful transaction will require approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.
If MACA’s Board of Directors declares a dividend of up to 2.5¢ per share before the closing of the offering, the price paid to shareholders will be reduced by the amount of the dividend.