Ferrovial bids to takeover Broadspectrum

Madrid, Spain based Ferrovial is attempting to buy 100 per cent of Broadspectrum shares

Madrid, Spain based Ferrovial is attempting to buy 100 per cent of Broadspectrum shares

Spanish infrastructure operator Ferrovial has bid AU$715 million for the acquisition of Broadspectrum, formally Transfield services, resulting in an offer of AU$1.35 per Broadspectrum share.

The proposed acquisition has not been considered by the Broadspectrum board. Broadspectrum has advised its shareholders to take no action as it considers the offer.

The bid is a follow up of a previous Ferrovial offer to take over Broadspectrum, who were then known as Transfield. Ferrovial Services had initially proposed a price of AU$1.95 per share, which rose to AU$2.00, but both offers were rejected by the Transfield board.

Ferrovial said at the time that it would continue to look to expand its business internationally.

If successful, Ferrovial said the current acquisition attempt would support the company’s entry into the Australian market by integrating a large services company with a significant platform across various segments.

The company achieved revenues of AU$3,800 million and EBITDA of AU$265 million in the financial year ended June 2015.

As reported in the Gas Today Summer edition, in October 2015 a re-branding to operate under the name Broadspectrum was formally approved at the company’s AGM.

Through contracts with the likes of Woodside, Santos, QGC, Origin Energy, ExxonMobil, Shell and Caltex, Broadspectrum has established itself as a leading service provider in Australia’s oil and gas industry under the Transfield banner.

Enter your details to subscribe to the free fortnightly Gas Today e-newsletter

Thank you for signing up for the Gas Today Online Update.