Australian mining equipment and rolling stock supplier Bradken yesterday rejected an unsolicited $427-million takeover offer from private equity firm Pacific Equity Partners and US-based Koch Industries.
Bradken rejected the $2.50 per share indicative non-binding offer saying, "The board of Bradken considered the proposal and determined that it does not represent fair value and accordingly determined not to engage further."
"The proposal was subject to a number of conditions including certain financial due diligence," Bradken added.
The offer price of $2.50 per share is less than about half the $5.10 per share offer made last year by PEP and Bain Capital for Bradken. The company's share later fell 36 per cent after the proposed deal collapsed.
Mining companies and allied services businesses have been hard hit due to plunging commodity prices and Bradken's revenue was down 12 per cent for six-months to December 2014.
Bradken is a global manufacturer of differentiated consumable and capital products to mining companies, supplying an extensive range of cast and fabricated products through its Mineral Processing division, Mining Products, Transport & Industrial Products, Engineered Products and Cast Metal Services division.
Bradken employs over 4,800 people globally and operates 54 manufacturing, sales and service facilities throughout Australia, New Zealand, the US, Canada, China, Malaysia, South Africa, Indonesia, South America and the UK.