The Courier-Mail

Brad­ken walks away from merger op­tion

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MIN­ING ser­vices group Brad­ken has de­cided against a merger with Chile’s Ma- got­teaux Group, pre­fer­ring to fo­cus on a com­pany restruc­tur­ing pro­gram it says is al- most com­plete.

Shares in the com­pany y dropped af­ter it said it would not re­new a 60-day ex­clu­siv­ity pe­riod that ex­pired at the week­end be­cause the neart­erm ben­e­fits were un­clear.

“There’s been a bit of dis­ap­point­ment from some peo­ple who thought cor­po­rate ac­tion may have been the an­swer to the story,” CMC chief mar­ket strate­gist Ric Spooner said. “But oth­ers had voiced con­cern that it may well have di­luted the ben­e­fits of B Brad­ken and they were unsu sure it was a good move for th them.”

A con­sor­tium of Magotte eaux’s own­ers Sigdo Kop­pers a and Champ Pri­vate Eq­uity st still want to pur­sue the merge er but were un­able to for­mula late a pro­posal be­fore S Satur­day’s dead­line.

Brad­ken, which in June needed a $70 mil­lion in­vest­ment through the is­sue of re­deemable con­vert­ible pref­er­ence se­cu­ri­ties, ac­knowl­edged that the merger may have paid off long- term and said it would con­sider a fu­ture pro­posal on its mer­its.

“The board be­lieves that the com­pany now needs to fo­cus all of its re­sources on com­plet­ing the restruc­tur­ing pro­gram,” Brad­ken said.

Brad­ken lost $240 mil­lion in 2014-15, partly due to the cost of merg­ing four of its busi­nesses to cut ex­penses.

Brad­ken shares have tum­bled more than 80 per cent since Oc­to­ber 2013. They re­cov­ered from early falls to close steady at $1.165 yesterday.

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