From THE BULL02.06.2010 06:30 PM Boom Logistics Ltd has become...

From THE BULL

02.06.2010 06:30 PM

Boom Logistics Ltd has become the target of take over speculation after a private equity company and a mining services company emerged with an almost 11 per cent stake in the crane company.

Australian-based Archer Capital Pty Ltd and McAleese Group, a mining services company, confirmed a 10.46 per cent stake through a substantial shareholder issued to the Australian Securities Exchange on Wednesday.

News of the strategic stake came as the Australian Financial Review website reported that Boom had received a takeover proposal from Archer Capital and McAleese, without naming sources.

The offer is understood to be pitched at 52 cents at share.

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

The website report said the joint potential bidders made the approach as recently as this week and Archer Capital has made at least three separate offers to Boom's board since November last year which haven't been disclosed to the market.

Boom managing director Brenden Mitchell was not immediately available to comment.

No one from Archer Capital was immediately available to comment either.

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.