Bradken to be sold for $688M to Hitachi

Company News

by David Chau

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.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.