What's impacting the Cimic (ASX:CIM) share price this week?

What's got investors shying away?

Manufacturing worker looking at a tablet.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Cimic provided an update of its proposed takeover on Monday 
  • Investors didn't appear pleased judging by the loss yesterday 
  • In the past 12 months, the Cimic share price has crept up by 22% 

Shares in Cimic Group Ltd (ASX: CIM) have opened the session at $22.01 apiece on Tuesday after starting the week in the red.

Whilst there's been nothing out of Cimic's camp today, it did update the market via a company announcement regarding its target's statement in response to a takeover offer on Monday.

TradingView Chart

What's going on with Cimic shares?

The company announced that it has released its target statement in response to the off-market takeover offer by German construction group, Hochtief Australia Holdings Ltd.

Hochtief AG (FRA: HOT), the holding company's chief, made the offer in February at an offer price of $22 cash per share.

It already owns a 78.58% stake in the company. If successful, this transaction would mean Hotchief will acquire all the remaining shares of Cimic it doesn't already own.

Cimic says that after it received the offer, it appointed an Independent Board Committee (IBC), comprising independent directors Russell Chenu and Kate Spargo, "with responsibility for considering, evaluating and responding to the offer."

Afterwards, the IRC appointed an independent expert to assess the offer and determine if it was in the best interests of stakeholders.

"The Independent Expert has concluded that the Offer is fair and reasonable to Cimic Shareholders other than Hochtief Australia," the release notes.

"The Independent Expert has assessed the estimated market value of Cimic Shares on a controlling and 100% basis to be in the range of $19.26 and $25.05 per Cimic share," it added.

Cimic also stated the target's statement has or will be sent to Hochtief and lodged with the Australian Securities and Investments Commission (ASIC) on Monday.

Cimic share price snapshot

In the past 12 months, the Cimic share price has crept up by 23% and is now soaring 30% higher this year to date.

During the past month, shares have slipped into the red and trade less than 1% down in the past week.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Mergers & Acquisitions

Two people shaking hands in the boardroom on a merger.
Mergers & Acquisitions

What did Macquarie make of the Brickworks and Soul Patts merger?

Macquarie sees simplification, scale, and upside… but it also has a warning..

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Mergers & Acquisitions

PointsBet share price surges 11% on improved takeover offer

The bidding war for PointsBet shares continues apace today.

Read more »

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys
Share Gainers

Why are Soul Patts shares up 9% today?

A marriage proposal has seen investors flock to this company.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Mergers & Acquisitions

Why are Brickworks shares up 18% today?

Let's find out what is getting investors excited this morning.

Read more »

Two hands being shaken symbolising a deal.
Mergers & Acquisitions

Soul Patts to merge with Brickworks shares: What does this mean for investors?

These two blue chips are merging as part of a $14 billion deal.

Read more »

The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition
Mergers & Acquisitions

WiseTech share price storms higher on $3.25b blockbuster acquisition

What is the company spending billions on? Let's find out.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Mergers & Acquisitions

IAG share price lifts off on strategic alliance approval

IAG shares are racing higher in Thursday’s sinking market.

Read more »

a group of business people sit dejectedly around a table, each expressing desolation, sadness and disappointment by holding their head in their hands, casting their gazes down and looking very glum.
Mergers & Acquisitions

This ASX 300 share is sinking 33% on takeover collapse fears

Is this takeover dead? Let's find out what is happening.

Read more »