Two private equity groups have made a joint bid for ASX-listed Bradken Limited, valuing the steel works and engineering company at more than $900 million.
The $5.10 share bid by Pacific Equity Partners and Bain Capital Asia is a 46% premium on yesterday’s closing price.
The 90-year-old Bradken is currently in the middle of shutting its Australian steel foundries and moving works offshore to Asia.
The Board of Directors of Bradken say the bid has been made at a low point in the mining cycle and at a time of share price volatility in the broader mining services sector.
The board is reviewing the proposal.
Bradken, which has a restructuring program to save $27 million a year by July 2015, employs 4,600 people and is a supplier to the global resources, energy and freight rail industries.
It’s shares jumped 30% today to trade at $4.35.