Shares in Balcatta-based minerals tester Ammtec have soared 30 per cent after it received a $123 million takeover offer from laboratory services and chemicals producer Campbell Brothers.
Campbell Brothers subsidiary Australian Laboratory Services has made a cash offer of $3.35 for each Ammtec share, a 33 per cent premium to Ammtec's last traded share price of $2.51.
News of the takeover offer boosted Ammtec shares from yesterday's close of $2.51 to a high of $3.26, a surge of 75 per cent or 29.9 per cent. At 12:03 AEST, shares in Ammtec were at $3.23.
"The board of Ammtec is considering its response to the announcement, and, pending further advice from the board, Ammtec's shareholders are advised to take no action in relation to Campbell Brothers bid or any document received from Campbell Brothers until they receive the Directors formal recommendation," Ammtec said in a statement.
Ammtec's main operations involve supplying metallurgical and mineral testing services to the mining industry.
It has laboratories in Western Australia, New South Wales, South Australia and Tasmania.
Australian Laboratory Services provides laboratory and technical services to minerals, coal, industrial and food markets around the world.
In December Ammtec managing director, Rod Smith said Ammtec's core business was strong with its order book suggesting that the metallurgical and mineral testing work at the Balcatta facilities in WA would be very strong to June 2010.
"There are a number of significant pilot plant programs committed to commence ...indicating that demand for test work in WA is returning to the levels we experienced prior to the GFC," he said.
"Planning approval has recently been granted for the construction of our new hydromet facility in Balcatta. The recently established mineralogy division is currently undertaking some innovative work associated with the oil and gas sector, which I expect to expand in the future."
The latest offer by Campbell comes some seven months after it acquired another WA minerals tester, PearlStreet.
At the time the takeover was valued at $56.3 million, and trumped a competing proposal from Catalyst Investment Managers.
