Shares in Broadspectrum, the renamed company running Australia's detention centres, are going nuts

Manus Island Regional Processing Facility. Image by the Australian Department of Immigration and Citizenship via Getty Images

Ferrovial, Spanish infrastructure company, has made another offer for Broadspectrum, the renamed Transfield Services.

Shares in Broadspectrum jumped by half after the $715 million cash bid was announced.

A short time ago, the shares were up almost 53% to $1.30, just below the offer price of $1.35.

Íñigo Meirás, CEO of Ferrovial, says: “If the offer is successful, it would represent a solid step in Ferrovial’s strategy to expand its global footprint and the Group’s presence in Australia. Ferrovial has a proven track record of disciplined acquisitions and successful integrations.”

The offer is subject to Foreign Investment Review Board approval and a 50.01% minimum acceptance.

Ferrovial last year made a $2 a share bid, but that was rejected by Transfield.

Transfield, which has Australian government contracts to run detention centres in Papua New Guinea and Nauru, changed its name to Broadspectrum after its founding family withdrew rights to use the Transfield name.

The private company Transfield Holdings, owned the Belgiorno-Nettis family, wanted to distance itself from Transfield because of the detention centre contracts.

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