The Maca Ltd (ASX: MLD) share price is rocketing higher following a $350 million takeover proposal.
Thiess has put forward an all-cash off-market offer of $1.025 per share in Maca.
At the time of writing, the Maca share price is 98.7 cents, 23.38% higher than its previous close.
Let's take a closer look at the bid posed to the mining and civil construction company.
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Thiess puts forward bid for Maca
Global mining services company Thiess has put forward a bid for Maca, offering shareholders a 28% premium on the ASX share's previous closing price.
The Maca board has unanimously recommended investors accept the offer. Though, its recommendation is contingent on an independent expert concluding the bid is reasonable and no better offer coming along in the meantime.
The offer is also conditional on Thiess receiving a 90% holding in Maca at the end of the offer period and regulatory approval. The regulators involved in the transaction will include the Foreign Investment Review Board and the Australian Competition & Consumer Commission.
Maca co-founder and chair Geoff Baker commented on the takeover bid driving the company's share price today, saying:
The board of Maca believes that Thiess is the right partner for the Maca business … Thiess will continue investing in our respected brand and will seek to provide additional development opportunities for our people as part of its national and international operations.
Thiess executive chair and CEO Michael Wright said the offer brings shareholders "certainty of cash, a strong premium, and an ability to achieve liquidity". Wright continued:
The proposed acquisition of Maca is an important part of Thiess' strategy to diversify its operations across commodities, services, and geographies.
We recognise and intend to maintain and grow Maca's strong brand and presence in the Western Australian market. Thiess also looks forward to supporting Maca to meet the evolving needs of its client base through promoting further investment in low emission and technology-led solutions.
Maca share price snapshot
The mining and constructing small cap has been outperforming many of its S&P/ASX 200 Index (ASX: XJO) peers lately.
Today's gain sees the Maca share price 23% higher than it started 2022. It has also gained 7% since this time last year.
Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped 11% year to date. It has fallen 16% over the last 12 months.
