Emeco plays down sale speculation

RESURGENT mining equipment hire company Emeco Holdings has been forced to deny takeover speculation.

Emeco plays down sale speculation Emeco plays down sale speculation Emeco plays down sale speculation Emeco plays down sale speculation Emeco plays down sale speculation

On its front page today, the Australian Financial Review reported that the company met with its major shareholder and lender, Connecticut-based Black Diamond Capital Management, recently with Macquarie bankers to discuss options.

According to the report, there was discussion bolt-on M&A deals worth up to A$150 million, refinancing debt early via an equity raise or use of its cash sweep, and even the sale of the business to an Australian trade player, a large American rental business or US-based private equity.

Emeco said the report had drawn on extracts from an "early draft of a strictly confidential board document".

"Emeco's management team constantly considers the company's strategic position in order to maximise long-term value f...