Bradken Limited
(ASX:BKN) says it has been approached for a possible merger by the Magotteaux Group, a wholly-owned subsidiary of Sigdo Koppers.
Both parties have agreed to investigate the benefits of a merger over a 60 day exclusivity period before taking the idea to Bradken shareholders.
Bradken also said that it has secured a $70 million investment by way of Redeemable Convertible Preference Securities from a consortium of Sigdo Koppers and CHAMP Private Equity allowing for balance sheet flexibility.
The slowdown in mining activity has impacted on Bradken earnings with FY15 EBITDA expected in the range of $136 - $138 million. The outlook is for revenue in the first half of 2016 to be in line with the current half.
Bradken reported a net loss of $92.59 million of the first half of the 2015 finacial year.
