The deal is the first in a staged exit by the Clough family, and would see Murray & Roberts eventually emerge as controlling stakeholder in the Australian firm.

“If the proposed transaction is approved the strategic alliance between Clough and Murray & Roberts is expected to greatly enhance the competitiveness of Clough in the minerals area, not only in Australia but also in South East Asia and provide greater global access for Clough’s oil and gas business by leveraging Murray & Roberts leading position in Africa and the Middle East”, said a Clough company statement.

The directors warned if the deal did not go ahead the consequences for shareholders could be significant. “Failure to raise the $40.8 million under the placement may delay implementation of the strategic plan and most likely would reduce Clough’s capacity to generate increased returns to shareholders in the near term’, the report said.

The independent directors also said Clough’s ability to pursue opportunities in the minerals marketplace would be hindered.