Shares in Emeco Holdings Limited (ASX: EHL) are more than 8% higher after the mining equipment firm confirmed it had been approached about a buyout of the company.
The company told the ASX in an announcement that it "notes the speculation appearing in The Australian newspaper that it may be in discussions relating to a potential control proposal for Emeco''
Emeco confirms that it has received unsolicited interest from a number of potential acquirers and has had discussions with those parties. However, at this time, no party has put forward a proposal which warrants being progressed to a binding proposal. Emeco will keep shareholders informed of any material developments as appropriate.
Emeco, at Friday's closing price of $1.08, was valued at $559.8 million.
The company's shares hit a 12-month high of $1.20 on Monday, with more than five times the usual volume of shares traded.
The shares are currently trading at $1.17, up 8.3%. Shareholders have done well out of the stock this year, with it having appreciated from as low as 69 cents earlier this year.
Strong results to continue
Emeco announced in August that it had generated full-year revenue of $785.4 million, up 7% from the previous year, while operating net profit was 22% higher at $84.5 million.
The company said at the time that continuing strong levels of production activity in the mining sector supported a positive outlook for heavy equipment demand.
It was anticipating moderate earnings growth, significant free cash flow, and substantial further deleveraging.
