Minerals and metallurgy testing labs Ammtec have rejected a $123 million takeover offer from Campbell Bros.
Ammtec announced that the bid undervalued the company after Campbell Bros. last week made an offer of $3.35 per share with an alternative option of a 2 for 17 all scrip offer.
It stated that the proposed offer was opportunistic and did not attribute value to the uplift in earnings and revenue Ammtec predicted for FY11 and onwards.
Ammtec believed these future earnings should be recognised in any future proposal, chairman David Macoboy said.
The testing firm released guidance for the 2011 financial year which forecast an increase in NPAT of between $11.1 to $12.9 million, with revenue projected to range between $73 and $79 million.
Ammtec’s EBITDA is expected to range between $19.6 and $22.2 million.