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The independent members of Leighton Holdings Limited (ASX:LEI) board have recommended the offer made by majority shareholder Hochtief earlier this week. The german company presented a proportional cash bid of $22.50 per share. It intends to increase its shareholding from 58.8 per cent to nearly 75 per cent by purchasing 3 out of eight Leighton shares it does not already hold.
Leighton’s share price spiked last week ahead of Monday morning’s offer prompting ASIC to investigate the company. S&P yesterday downgraded Leighton’s credit rating saying Hochtief's intention to lift its shareholding and board representation will decrease separation of the governance arrangements between the companies.
In the first half of the 2014 financial year, Leighton Holdings reported a net profit of $468.9 million.
