Bradken merger talks still on table despite market unease

Bradken noted the decline in its share price yesterday, saying it couldn’t explain the action, which saw 1.2 million shares change hands and the price drop from an open of $1.22 to a close of $1.12, via a low point of $1.11.

“Bradken notes the recent decline in the trading price of its shares and confirms that it is not aware of any reason for the decline that has not been previously disclosed to the market,” the company said in an ASX statement on Wednesday morning.

The company confirmed its financial year results would be in line with guidance from late June. EBITDA will be in the range of $136m to $138m, and reported net debt will be around $410m as at June 30, Bradken told the market.

“While Bradken’s end markets remain challenging, Bradken continues to take proactive steps including restructuring the cost-base of its operations to ensure quality of earnings is maintained,” the company said.

“Bradken continues to explore a potential transaction with Magotteaux in co-operation with CHAMP and Sigdo Koppers and will keep the market informed of developments.”

Magotteaux is a Chilean producer of wear resistant consumables for ball mills, vertical mills, crushers, kilns, pre-heaters and coolers. It is a division of Sigdo Koppers. CHAMP is a private equity firm.