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.
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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.
