Looking to clinch a current deal with Leighton Holdings, Punj Lloyd has sweetened its offer for the construction business of Macmahon Holdings, a leading Australian contract mining and construction company.
Punj Lloyd’s unit Sembwang Australia Pty would offer Australian dollar 38 million for Macmahon's construction businesses, including its rail business. The company is offering to outbid Macmahon's existing Australian dollar 20 million agreement with Leighton for the construction assets, minus the rail business, by Australian dollar 5 million.
Further, Macmahon, which is divesting off its construction arm to become a full service mining contractor, board was considering the proposal. Australian contract mining and construction company last week had distanced itself from Punj Lloyd's original approach, which did not include a dollar figure, reasoning it could not offer the Indian firm due diligence due to exclusivity arrangements with Leighton.