Experts tell M&R it’s worth more than R20/share


Experts tell M&R it’s worth more than R20/share


Published Date: 2018-04-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

Experts tell M&R it’s worth more than R20/share

The group's independent board appointed BDO Corporate Finance to provide it with an independent valuation

Murray & Roberts has again advised shareholders to disregard a buyout offer from ATON, saying experts have confirmed it's worth more than the German investor is proposing to pay.

M&R hired BDO Corporate Finance to provide an independent valuation and it says its preliminary findings suggest a fair value price range for control of the company is R20 to R22 per share. That would value the group at up to R9.8 billion.

Last month, ATON proposed an offer to shareholders of R15 per share to take the company private. However, M&R's independent board dismissed the proposal as "opportunistic", saying it materially undervalues the company based on its prospects. It said the offer was "made at a time of unprecedented share price weakness as a consequence of low liquidity, declining valuations of its legacy peers in the construction sector and halting of the company's share buy-back programme in 2017.

ATON is owned by the Helmig family and holds a diversified portfolio of investments in technology, mining, automotive engineering and medical technology. It bought a 4.5% stake in M&R two years ago and increased that through a number of purchases last year. Yesterday, M&R said it had increased its stake to 33.1%. ATON has an irrevocable undertaking from Allan Gray to support its offer - if one is made. Allan Gray holds about 10.9% of M&R on behalf of its clients.

M&R said shareholders should take no further action regarding the proposed offer, which is expected to open on or about Friday.


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