Spanish infrastructure giant Ferrovial has extended its takeover offer for Broadspectrum after lifting its stake in the target to 59 per cent.
Spanish predator Ferrovial has extended its $769 million takeover offer for Manus Island detention centre operator Broadspectrum and declared it unconditional after building a stake of 59 per cent of Broadspectrum shares.
Ferrovial on Monday said its offer for the maintenance services and asset management firm had been automatically extended until May 13 because it had achieved acceptances of more than 50 per cent.
"Ferrovial believes that the offer of $1.50 in cash (per share), which has been recommended by the board of directors of Broadspectrum, is very attractive and encourages the remaining shareholders to accept," Ferrovial said in a statement on Monday.
Shares in Broadspectrum were 2.00 cents, or 1.35 per cent, higher at $1.50 at 1338 AEST.
Ferrovial said the acquisition of Broadspectrum supported Ferrovial's entry into the Australian market.
It noted that Broadspectrum had a broad platform of operations in Australia, the US, Canada and Chile, in the energy, mining, telecommunications, social, property, defence and infrastructure maintenance markets.
The Spanish firm said the detention centres that Broadspectrum operates on Papua New Guinea's Manus Island and Nauru were not a core part of Ferrovial's reasons for acquiring Broadspectrum or its valuation of Broadspectrum.
And, operating detention centres was not a strategic activity in Ferrovial's portfolio.
"Ferrovial's view is that this activity will not form part of its services offering in the future," Ferrovial said.
Broadspectrum accepted Ferrovial's takeover offer last Friday, after previously rejecting it.
The change of mind followed the PNG government's announcement it would shut the Manus Island detention centre after the Supreme Court ruled Australia's detention of asylum seekers on the island was illegal.
Broadspectrum's shares soared more than 32 per cent on Friday after the company's board said it would accept Ferrovial's offer.