Nov 28 (Reuters) - MDM Engineering Group Ltd, which provides engineering services to the mining industry, said it agreed to be bought by Australia’s Sedgman Ltd in a deal valued at $110 million.
Under the deal, which is subject to MDM shareholder approval, Sedgman’s BVI unit will acquire the total share capital of MDM.
South Africa-based MDM said its shareholders will receive 181 pence cash for every share held, representing an 8.7 percent premium to MDM’s closing price on Tuesday on the London Stock Exchange.
Sedgman, which provides mineral processing and infrastructure services to the resources industry, said the deal will allow it to grow its presence in Africa.
As part of the deal, the 70 percent of the consideration paid to key MDM shareholders, including some senior employees, will be in cash, while the rest will be paid in the form of Sedgman shares.
MDM, with a market value of 62 million pounds ($99.4 million), offers services such as project evaluation, design, construction and project management to the mining industry.
MDM shares were up 5 percent at 175.6 pence, below the offer price, at 0807 GMT.