Brookfield launch bid for Multiplex

Brookfield Asset Management Inc has made a $6.5-billion all-cash takeover bid for Multiplex Group, the major Australian construction company behind London's recently completed but Wembley Stadium.

The deal would give Brookfield, a major Toronto-headquartered conglomerate formerly known as Brascan, its first major foothold in Australia through Multiplex. The Sydney-based company has spent the last few years wracked by controversy and speculation that it was teetering on the edge of bankruptcy.

Under the terms of the offer, worth Aus$7.3 billion, Brookfield needs to acquire more than 50 per cent of Multiplex's shares, which are listed on the Australian Stock Exchange.

The Roberts Family Nominees, which holds about 26 per cent in Multiplex, has agreed to Brookfield's offer, Multiplex said in a statement. The board also agreed to the offer, it said. "Multiplex welcomes Brookfield as a significant Multiplex securityholder," the company said.

Multiplex directors had undertaken to support the proposal once they receive an independent report that concludes it is fair and there isn't a superior bid available.

Jeff Blidner, managing partner at Brookfield said, "We believe that this offer maximizes value for all Multiplex security holders in a structure which provides the certainty of an all-cash offer at a significant premium."

Multiplex was founded by John Roberts in the early 1960s and built a strong reputation with projects like the Telstra Stadium in Sydney Olympic Park, home of the Summer Olympics in 2000.