Boom Logistics Shares Surge 36% After Company Confirms Takeover Approach
Stock Chart for Boom Logistics Ltd (BOL)
Boom Logistics Ltd. shares rose by a record in Sydney trading after the crane-hire company confirmed a takeover approach from Archer Capital valuing it at A$0.52 a share.
Boom shares, which tumbled 23 percent last year while Australia’s benchmark stock index rose 31 percent, jumped as much as 47 percent to 44 Australian cents, a record intraday gain, before closing up 36 percent -- the most since Jan 29, 2009.
“Private equity companies are obviously cashed up and seeing a lot of value in distressed companies that seem to have underperformed,” said Chris Weston, head of institutional dealing at IG Markets in Melbourne. “The fact it’s such a huge premium is a stamp of approval on the value of the company.”
Boom Logistics Ltd. said in a statement that it received a conditional, incomplete proposal valuing the company at A$0.52 a share.
Boom said it has advised shareholders to “take no action at this stage.”
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