Ferrovial, through Ferrovial Services, announced on Monday that it has submitted a takeover offer for all the issued shares in the Australian based company Broadspectrum (formerly known as Transfield Services) for A$1.35 per share, which implies an investment of A$715 million (approximately €490 million).

Broadspectrum achieved in its financial year 2015 (ending in June) revenues of A$3,800 million and EBITDA of A$265 million. The company currently employs more than 25,000 people.

Ferrovial Services believed the proposal represents a compelling proposition for Broadspectrum's shareholders providing the certainty of cash and a premium to recent trading levels. The offer represents a premium of 59% to the last closing price of Broadspectrum shares prior to the announcement date.

The offer will be subject to a final 50.01% minimum acceptance, foreign investors approval by Australian authorities and other limited conditions. The all-cash offer is not subject to any financial condition.

According to sources, Broadspectrum is expected to reject the hostile takeover bid from Spanish infrastructure group Ferrovial, which has come knocking on the Australian contractor's door for the second time in 12 months.

The offer is 65¢ lower than the A$2 a share Ferrovial previously offered to Broadspectrum's board in December 2014, an offer which valued the Australian group at A$1 billion. It is also well below the value of Broadspectrum's shares in May, when they were trading at around A$1.70.

Broadspectrum told investors on Monday to take "no action" on the takeover proposal. Broadspectrum's board told investors it has "significant opportunities" as a stand alone-company but delayed making a formal recommendation on Ferrovial's takeover bid, leaving a door open to negotiate a higher offer.

An analyst at Investment group Allan Gray, which owns 18.7 per cent of Broadspectrum, said on Monday:

"We view it as an opportunistic bid and we don't think it recognises the full value of the company."

Broadspectrum will not send its target statement to shareholders until Ferrovial's bidder's statement receives approval from the Australian Securities and Investments Commission, and is distributed later this month or early next year.