Transfield Services (ASX:TSE) has received an indicative, non-binding and conditional proposal from Ferrovial Servicios, S.A. for acquisition via acquire cash consideration of $1.95 per share, less the value of any dividends paid after 17 October 2014.
Transfield's last traded price on Friday was $1.50, and shares now currently trading at around $1.90.
Transfield has considered Ferrovial’s and has formed the view that the price of $1.95 per share does not reflect the underlying value of Transfield shares.
The company has experienced strong trading in the first quarter ended 30 September 2014 and will update shareholders on the outlook for the current financial year at the Annual General Meeting on 5 November 2014.
This is in addition to a robust future pipeline of growth in the energy, defence, government services and infrastructure sectors.
Nevertheless, Transfield will conduct exploratory discussions with Ferrovial to determine whether a proposal which would deliver better value to shareholders can be put forward.
As part of these discussions, Transfield is prepared to provide Ferrovial with limited due diligence information on a non-exclusive basis, subject to an appropriate confidentiality agreement.
Transfield Services will advise shareholders of the outcome of the discussions with Ferrovial as soon as practicable.
