SYDNEY, April 29 (Reuters) - Australia's Broadspectrum Ltd BRS.AX , which runs the country's offshore immigration detention camps, said it changed its mind and will recommend a A$769 million ($586 million) buyout from Spain's Ferrovial SA FER.MC after Papua New Guinea vowed to shut the camp it runs there.
On Wednesday, Papua New Guinea's high court ruled that the Broadspectrum-run detention centre currently housing more than 800 Australia-bound refugees was unlawful and the country's government said it would shut the camp. has previously said it would recommend shareholders reject several offers from infrastructure giant Ferrovial, most recently on April 6, but said in a statement late on Thursday that it will now support the offer following the Papua New Guinea decision.
The decision "has increased the level of near-term uncertainty to its contract with the (Australian) Department of Immigration and Border Protection, and future earnings that may be derived from it", Broadspectrum said.
Noting that the Ferrovial offer closes on May 2, Broadspectruum said "it is unlikely that the company will have certainty as to the potential impacts before the current scheduled closing date".
Broadspectrum shares have been in a trading halt since the Papua New Guinea decision, having last traded at A$1.12. In its latest approach, Ferrovial has offered A$1.50 per share for the Australian company.
In 2014, Broadspectrum rejected an offer from Ferrovial of A$2.00 per share as being too low. ($1 = 1.3125 Australian dollars)