MACA, an Australian metal mining services company, has agreed to a takeover bid of A$350m ($243.1m) from rival mining contractor Thiess.

The parties have entered into a bid implementation deed in this regard.

As per the details of the conditional off-market takeover proposal, Thiess will offer A$1.025 ($0.71) in cash per share for MACA’s shareholders. The offer price is a premium of 28.1% to the last close price of MACA’s shares on the Australian Securities Exchange (ASX) on 25 July 2022.

Based in Australia, Thiess offers open cut and underground mining services in its home country, Asia, and the Americas. The company is owned by CIMIC Group and funds advised by Elliott Advisors (UK).

MACA caters to the mining, infrastructure, and construction sectors. Its mining services include loading and hauling, drilling and blasting, and materials handling.

Thiess said that the proposed acquisition of MACA is in line with its strategy to diversify its operations in commodities, services, and geographies. It plans to operate MACA in materially the same way it is currently being operated, supported by the latter’s workforce, assets, and brand.

Thiess executive chair and CEO Michael Wright said: “Thiess has a high regard for MACA’s service quality, and we believe our industry experience positions us well to enhance MACA’s value proposition to clients and employees.

“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’s directors have recommended the company’s shareholders accept Thiess’ offer, in the absence of a superior proposal as well as subject to an independent expert determining the offer to be fair and reasonable to shareholders.

MACA non-executive chairman and co-founder Geoff Baker said: “Thiess approached us with a compelling offer at an attractive price which represents a strong premium to recent trading prices.

“The Board of MACA believes that Thiess is the right partner for the MACA business, with similar values and a desire to enhance services to our clients, and to carry on the community and charity engagement initiatives of which MACA is so proud.”

Thiess said that its offer is subject to limited conditions. These include approval from the Australian Foreign Investment Review Board (FIRB) and no objection by the Australian Competition and Consumer Commission (ACCC) among others.