Spanish infrastructure group Ferrovial has submitted a US$520m takeover bid for Australian company Broadspectrum.
The offer equates to $1 a share, which represents a premium of 59%.
Broadspectrum, formally known as Transfield Services, has more than 25,000 employees and has achieved revenues of $2.8bn.
It operates in Australia, the USA, Canada and Chile, and in sectors such as energy, mining, telecommunications and infrastructure maintenance markets, although it has gained most notoriety for operating Australia’s offshore detention centres in Papua New Guinea.
If successful, the acquisition would support Ferrovial’s entry into the Australian market.
The offer will be subject to approval by the Australian authorities.
The all-cash offer is not subject to any financial condition.
The proposed acquisition has not been considered by the Broadspectrum Board and there is "no guarantee the transaction will be successful".
Ferrovial has tried to take over the company before, and its newest bid is 29% lower than its offer last year.
Broadspectrum’s shares have halved over the past year after it come under scrutiny for its management of the detention centres on Nauru and Manus Island, which some lawyers have claimed are operated in breach of international human rights law.
Ferrovial’s bid may not be successful, as the Board of Broadspectrum has advised shareholders to "take no action in respect of the offer".
Image via Broadspectrum