MELBOURNE, Australia - Australian manufacturer Bradken has reportedly accepted a bid of A$688.5 million by Japanese construction and mining-machinery supplier Hitachi Construction Machinery Co.
On Monday, in a statement addressed to the Australian stock exchange, Hitachi Construction stated that it was to offer A$3.25 as price of each share of Bradken.
The lack of a better deal, combined with an expert’s nod, lead the Bradken board to urge shareholders to vote for the acceptance of the deal.
Chairman of Bradken, Phil Arnall said in a statement, “It lets Bradken, which has a proud history in mining and industrial services, join with one of the world's largest machinery companies.”
Reports noted that a proposal to recapitalise by Champ Private Equity was dismissed by Bradken after the company learnt that the recapitalisation would’ve lead Champ’s stake in the company to rise from 3.1 percent to a whooping 49.9 percent.
In 2015, a consortium of Champ and Sigdo Koppers SA suggested an affiliation between Bradken and Sig Do's Magotteaux Group subsidiary but talks fell through in September 2015.
In terms of shares, there was a 34 percent increment of premium from Hitachi.
However, the deal isn’t set in stone yet. It still awaits the takeover of at least 50 percent of Bradken’s shares and the standard regulations.
The Japanese company is 50 percent owned by Hitachi Ltd and the company has agreed to takeover Bradken’s A$450 million credit facility.
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