archer capital, mcaleese group approach boom , page-5

Good news for BOL holders, I'd nearly given up watching it gryrating around 30 cents lately. Good luck to BOL holders.


Equity firm offers $240m for Boom TREVOR CHAPPELL AND ALISON BELL
June 2, 2010 - 7:59PM

AAP

Boom Logistics Ltd has confirmed it is the target of a takeover bid from a private equity group that values the company at $240 million.

Boom Logistics chief executive Brenden Mitchell said the company had received a highly conditional $240 million takeover bid from Archer Capital Pty Ltd.

Mr Mitchell told AAP late on Wednesday that Boom had been in discussions with the Australian-based Archer, which had submitted an indicative bid of 52 cents per share to Boom's board.

"But there is no firm offer and nothing for the board to take to shareholders," Mr Mitchell said.

He said the bid is highly conditional and included a confidentiality clause.

Given reports of the takeover offer on the Australian Financial Review website on Wednesday, this clause may have been breached already, he said.

The bid was received from Archer alone, and, contrary to media speculation, Boom has had no discussions with mining company McAleese, he said.

Shares in Boom Logistics closed up 0.5 cents at 30 cents on Wednesday.

Boom has had no other offers for the company, and would lodge an announcement with the Australian Securities Exchange before trading commences on Thursday, Mr Mitchell said.

Boom is being advised by Lazard, and Archer is being advised by Morgan Stanley, he said.

No one from Archer Capital was immediately available to comment.

The move came after Boom on Wednesday announced that it had secured three contracts expected to generate around $50 million in revenue over the next three years.

Boom said it had secured a new three-year contract to supply cranes to global miner BHP Billiton Ltd's iron ore operations in the northwest of Western Australia.

The new deal includes two two-year options to extend.

Revenue from the contract is expected to be around $35 million over the next three years.

The contract will require dedicated cranes and resources for all shutdown and maintenance works at BHP Billiton's operations at Nelson Point and Finucane Island in Port Hedland.

Boom also said it had secured a new three-year contract to supply cranes to Anglo American metallurgical coal operations in central Queensland.

Revenue will be more than $6 million over the next three years.

Boom will provide cranes for maintenance works at Anglo American coal operations at the Moranbah North and Capcoal mine sites.

Furthermore, Boom has re-signed its BP refinery contract at the Kwinana site in Western Australia for a further three years.

Revenue from the contract is expected to generate revenue of about $9 million over the next three years.