<span class="" id="parent-fieldname-description"> Rail wagon supplier Bradken has let a pair of private equity firms who want to buy the company for $872m conduct due diligence, despite the companyâs board resisting the bid. </span> <p>On Friday last week it was announced a consortium of Pacific Equity Partners and Bain Capital Asia had lobbed a $5.10 per share bid to acquire 100% of Bradken. The bid follows a non-binding and indicative takeover proposal from the same consortium in August, which was at $6.00 a share, according to Bradken.<br /><br />Bradken, which manufacturers rail wagons, grinding media and other products for the mining industry, has struggled with slowing growth in the mining sector and has shed roughly 450 jobs in the past 12 months.<br /><br />But it saw its share price bounce from a $3.32 close on Thursday last week to $4.53 on Friday, and a number of analysts have said the offer from the pair of private equity firms is a good one for the company.<br /><br />Bradken’s board, responding to the bid on Friday, was not happy to be receiving the bid at the industry’s nadir, however.<br /><br />“The board notes that the proposal by the consortium has been made at a low point in the mining cycle during a time of significant share price volatility in the broader mining services sector,” the board told the ASX.<br /><br />“The board remains confident in the outlook and growth prospects for Bradken and believes that the company is well placed to continue to grow and maintain its earnings quality through the cycle despite volatility in some of its end markets and financial difficulties of some competitors and peers.<br /><br />“The company is executing a number of specific initiatives &hellip that will enable it to recharge growth within the business and it is also evaluating other opportunities &hellip”<br /><br />Bradken has appointed Merrill Lynch and Rothschild as financial advisors.</p>
