The all-cash takeover bid for Broadspectrum – formerly known as Transfield Services - is at a price of AU$1.35 (£0.66) per share, which represents a premium of 59% on the last closing price of Broadspectrum shares and puts the total value of the transaction at AU$715m (£347m). Ferrovial has submitted the takeover offer through Ferrovial Services.
The proposed acquisition has not been considered by the Broadspectrum board and there is no guarantee the transaction will be successful.
Ferrovial Services believes the proposal represents a compelling proposition for Broadspectrum’s shareholders providing the certainty of cash and a premium to recent trading levels. If successful, the acquisition would support Ferrovial Services’ entry into the Australian market.
Broadspectrum operates in the energy, mining, telecommunications and infrastructure maintenance markets. It also works in other countries including the USA, Canada and Chile. The company’s revenue for the year ended June 2015 was AU$3.8bn and its earnings before interest, taxes, depreciation and amortisation (EBITDA) were AU$265m.
The offer will be subject to a final 50.01% minimum acceptance, approval by the Australian authorities and other conditions. The all-cash offer is not subject to any financial condition.