Jan 04, 2013

Macmahon Holdings Ltd (ASX:MAH) notes the announcement yesterday by Sembawang Engineers and Constructors Pte Ltd (Sembawang) regarding two proposals under which Sembawang would acquire either a portion or all of Macmahon's Construction Business (refer attached Sembawang press release dated 3 January 2013).

Macmahon confirms that it has received an unsolicited, non-binding, incomplete and conditional proposal from Sembawang Australia Pty Ltd, a wholly owned subsidiary of Sembawang (the Sembawang Proposal), consistent with the terms described in the Sembawang press release.

Whilst the Sembawang Proposal is limited in detail, Macmahon notes that it is conditional upon satisfactory due diligence being completed, and Sembawang board approval being received, by 31 January 2013.

As previously announced to the market on 24 December 2012, Macmahon has executed an Asset Purchase Agreement ("APA") with Leighton Holdings Limited ("Leighton") in relation to the sale of the majority of its construction projects and associated plant to Leighton. Under the terms of the APA, and consistent with the exclusivity arrangements described in the MOU released to the ASX on 12 December 2012 (with which the summary of the APA provided on 24 December 2012 was to be read), Macmahon is subject to certain restrictions that apply to Macmahon's response to any competing proposal to the Leighton transaction.

These restrictions mean that, while the APA remains on foot, Macmahon cannot (without Leighton's prior consent) provide Sembawang with due diligence access for the purposes of Sembawang satisfying the due diligence condition to the Sembawang Proposal.

Macmahon will continue to keep its shareholders and the market informed of any developments in accordance with all legal and regulatory requirements.

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For further information, please contact:

Investor Relations
Theresa Mlikota       Chief Financial Officer       +61 407 470 859

Media Relations
Joeley Pettit-Scott       Acting Group Communications Manager       +61 467 775 376

Macmahon responds to Sembawang announcement323.67 KB

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