The Courier-Mail

Bradken walks away from merger option


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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