Bradken IPO Withdrawn

Castle Harlan Australian Mezzanine Partners Pty Limited (CHAMP) today announced that the Bradken Limited Initial Public Offer had been withdrawn.

“While the current shareholders could have completed the transaction at below the indicative price range, we are very confident in the strength of the company’s operations and growth prospects, and would prefer to retain the business rather than sell below $2.40 per share,” CHAMP Executive Chairman Mr Bill Ferris said.

Mr Ferris said that as part of the IPO process, international investors demonstrated strong support for the company and registered higher than expected demand within the indicative range.

“However, while many domestic institutions were also supportive of the deal, the difficult climate for IPOs in Australia meant that some interest lay below the indicative price range.

“Bradken is an exceptionally strong business with good growth prospects and a talented management team,” he said.

Commenting on the decision, Bradken shareholder and Chief Executive Mr Brian Hodges said: “Bradken’s management team is very clear of its view on the value of this business and are confident that it will continue to generate strong cash flow and above-average returns to shareholders.”

“Our focus will remain on delivering value-added products for our customers and building our already leading market shares.

“We remain firmly of the view that the expanding Australian resources sector and shift in freight from road-to-rail provide an exciting opportunity for our business and the people within it.

“On behalf of the Bradken Board and management team, I would like to thank everyone involved in the IPO process.”

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For further information:

Kate Kerrison
Gavin Anderson & Company
+ 61 2 9552 4499
kkerrison@gavinanderson.com.au

Press Release