Private equity group Crescent gets closer to control of Cardno

Buddhika Weerasinghe/Getty Images

Shares in infrastructure services company Cardno Limited soared after private equity group Crescent Capital Investments sweetened a takeover offer.

A short time ago, the shares were up more than 9% to $3.08.

Cardno, originally an engineering practice started in Brisbane, has been hit by the downturn in resources project investment.

Today Crescent improved its cash offer by 9.5% to $3.45 a share for one out of every two shares it does not own.

Part of the improved bid means that Crescent will take board control once it secures 30% of the company.

Cardno chairman John Marlay said: “We continue to believe that Cardno is a great business with strong prospects of delivering improved performance in the future, and with it, creating value, but we recognise that it is operating in difficult markets and that some shareholders may wish to take the opportunity to accept the increased offer and we respect Crescent’s right, as a major shareholder, to be represented on the board in that event.”

The offer values the bid about $235 million.

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