Macmahon & Leighton extend MOU

Both groups have dropped a requirement in their initial agreement along the proceedings which stated that Leighton were to obtain Macmahon's consent in paper before being able to extend its shareholding in the latter exceeding 19.9%.

Leighton has now 19% of Macmahon in hands.

There is no termination date for the new MOU which is effective starting from November 2 according to Macmahon.

Macmahon's ability to secure larger scale infrastructure projects both offshore and domestically had greatly improved after the original MOU which was signed and sealed in November 2007.

Also, Nick Bowen, chief executive of Macmahon commented that both companies had been benefiting from this relationship.

Mr Bowen explain on Tuesday that by having this joint venture on construction projects with Leighton Holdings' companies, they will be able to enhance their skill set while at the same time develop their expertise, especially in relation to technically complex and large scale projects.

The part where the standstill agreement was included in the initial MOU signed in 2007 wasn't extended.

This means that Leighton is required to obtain a written consent from Macmahon before it is entitled to aquire a shareholding exceeding 19.9% of Macmahon's issued capital.