The Broadspectrum Ltd (ASX: BRS) share price leaped almost 50% on news of another takeover offer from Spanish multinational infrastructure business, Ferrovial.
Today's announcement of a $1.35 all-cash offer will mark the second time in less than two years Ferrovial has made a bid for Broadspectrum, formally Transfield Services.
In 2014, Ferrovial made an offer of $2 per share for Transfield, but a near-60% decline in Broadspectrum's share price will mean the latest offer holds significant appeal for disgruntled shareholders.
Ferrovial was quick to point out the weaknesses and uncertainties faced by Broadspectrum over coming years but said it is making the offer based on its long-term strategic initiatives and eagerness to build its presence in Australia.
"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 CEO, Íñigo Meirás, said.
The offer is subject to a few conditions, including approval from the Foreign Investment Review Board (FIRB) and 50.01% acceptance.
The company said its offer represents a "significant" premium of 59% to the closing price of Broadspectrum shares on Friday and values the equity Broadspectrum at $715 million.
"The Offer provides a unique opportunity for Broadspectrum shareholders to realise a full and fair price for their shares at a significant premium to recent trading prices," Ferrovial Services Australia CEO, Santiago Olivares, said. "Our Offer provides Broadspectrum shareholders the certainty of cash consideration, eliminating the risks associated with the near term outlook in Broadspectrum shares."
In an announcement to the ASX, Broadspectrum told its shareholders to take no action. The company said its board will consider the offer and advise them shortly. The deal does not require the board's approval to proceed.
