Japan’s Hitachi Construction Machinery Co has launched a takeover offer to acquire mining equipment supplier, Bradken Ltd (ASX:BKN)
Hitachi will pay $688 million for Bradken, which will retain its head office in Newcastle, NSW.
The Japanese company will also offer $3.25 cash per Bradken share, which is much higher than its Monday closing share price of $2.43.
Bradken's board unanimously support Hitachi’s bid, but that depends on whether another company makes a higher offer, and a independent expert's report on whether the offer is fair and reasonable for Bradken shareholders.
Bradken reported a net loss of $195.9 million at 30 June 2016.