M&R withdraws Aveng merger proposal

JSE-listed Murray & Roberts (M&R) on Wednesday announced that it had withdrawn its proposal for a potential merger with Aveng.

The company announced last week that it was reviewing the decision by the Takeover Special Committee (TSC) to overturn the June decision by the Takeover Regulation Panel that enabled M&R to proceed with plans for a potential merger with Aveng, despite a mandatory offer by M&R  shareholder ATON to acquire all shares in M&R it does not already own.

“The board has resolved not to take the TSC’s decision on review at this time and continues to reserve its rights in this regard. “The board is disappointed with the decision reached by the TSC, in light of the prior approval given by M&R shareholders to continue to develop the potential transaction,” M&R said in a statement.

ATON holds a 44% stake in M&R and is seeking a buyout of all M&R shares. It has also acquired a 25% interest in Aveng. Aveng said in a statement that it acknowledged the withdrawal of M&R’s merger proposal. Aveng’s share price on the JSE rose by 12.5% following M&R’s announcement on Wednesday morning. M&R’s shares were trading 0.52% higher.