Ferrovial Hostile Takeover of Broadspectrum?
It is hard to determine when this was published but clearly the takeover happened. I found it interesting to learn it was perceived as a hostile takeover. Broadspectrum is controversial given its running of detention centres. It is a conglomerate and is involved in public sector infrastructure projects. The privatisation of government facilities is a critical issue in the public interest given reported abuses and issues in respect to accountability. The identity of this company was suppressed in 2017 by the government. Refer https://www.theguardian.com/australia-news/2017/mar/29/immigration-department-suppressed-detention-contractors-name-due-to-boycotts
Ferrovial inches closer to taking over Broadspectrum
Ferrovial’s $813 million hostile takeover bid for Broadspectrum is making some headway with 11 per cent of Broadspectrum investors taking up the offer.
This comes after the Spanish group last week gave a sweetener and raised its takeover bid to $1.50 a share in cash, up from $1.35 a share.
It also declared the offer final.
According to a Ferrovial statement, acceptances have risen from 2.09 per cent to 11.46 per cent.
This means some investors are ignoring the recommendation of the Broadspectrum board and its chair Diane Smith-Gander to reject the takeover bid, claiming it is not high enough.
The issue for Ferrovial and the keen Broadspectrum investors, however, is that the infrastructure company has to acquire 50.01 per cent of Broadspectrum’s stock. If it fails to achieve that, they won’t get any cash.
Broadspectrum’s biggest shareholder Allan Gray, which has an 18.7 per cent stake, has said that Ferrovial’s latest offer undervalues the company. And about 80 per cent is held by institutional investors.
Ferrovial’s $1.50 a share offer is open for acceptance until May 2.
