ATON is of the view that the implementation of the Offer will be beneficial to Murray & Roberts and its stakeholders. The Offer consideration represents significant value to Murray & Roberts Shareholders and provides an opportunity to realise value in cash and divest of their Murray & Roberts Shares at a premium. This is attractive considering the low trading volumes in Murray & Roberts Shares on the JSE.
The Offer Consideration of R17.00 per share represents a significant premium of 77.3% over the closing price of a Murray & Roberts Share as at 22 March 2018, being the last business immediately prior to the date ATON notified the Murray & Roberts board in writing (via the Firm Intention Letter) that ATON has the firm intention to make the Offer. The Offer values Murray & Roberts at R7.6bn and is subject only to legally required regulatory and merger control conditions and not subject to any due diligence.
ATON believes the premium represented by the Offer Consideration, and the opportunity to realise value in cash, is also attractive given the uncertain market outlook in Murray & Roberts’ key sectors. This uncertainty is also reflected in Murray & Roberts’ order book, which has declined in each of the financial years since 2015 and which, as Murray & Roberts stated in the 2018 interim financial results presentation is ‘admittedly … low’.