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UPDATE 1-Spain's Ferrovial to offer $500 mln for Australian detention camp firm

Published 07/12/2015, 10:12 am
Updated 07/12/2015, 10:20 am
© Reuters.  UPDATE 1-Spain's Ferrovial to offer $500 mln for Australian detention camp firm
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(Adds Ferrovial, Broadspectrum comments, deal history)

SYDNEY, Dec 7 (Reuters) - Spanish infrastructure giant Ferrovial SA FER.MC said it will offer A$692 million ($508 million) for Australian refugee camp operator Broadspectrum Ltd BRS.AX , little more than half the value of an offer the target company rejected a year ago.

In a statement before the start of trading on Monday, Ferrovial said it plans to offer A$1.35 per share in cash for Broadspectrum, compared to the stock's Friday closing price of A$0.85.

The move underscores the pressure on Broadspectrum over the past year as the company's strategy of diversifying out of mining services into immigration detention prompted several high profile shareholders to quit amid human rights concerns.

In December 2014, Broadspectrum - formally called Transfield Services - rejected Ferrovial's offer of A$2.00 per share as undervaluing the company, leading Ferrovial to walk away. urn:newsml:reuters.com:*:nL3N0U605D

"Our offer provides Broadspectrum shareholders the certainty of cash consideration, eliminating the risks associated with the near term outlook in Broadspectrum shares," Ferrovial Services Chief Executive Santiago Olivares said in the statement.

A spokesman for Broadspectrum said the company had no immediate response.

($1 = 1.3626 Australian dollars)

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