Subsea engineering services provider Neptune Marine has received a $59.6 million takeover proposal from Singapore-listed MTQ Corporation.
Neptune announced today that MTQ subsidiary Blossomvale Investments made a 3.2 cents per share cash bid for Neptune after close of trade yesterday.
Blossomvale is already a substantial shareholder in Neptune, after buying up more than 200 million shares in the company in March 2011.
Neptune director Boon Wee Kuah is also a director of Blossomvale, and as such, Neptune advised its shareholders to take no action until an independent committee can consider the offer.
The company's shares were up 29 per cent at 10:30AM, WST, trading at 3.1 cents.
MTQ said it expected to lodge a bidder's statement with ASIC shortly.
"MTQ anticipates that having control of Neptune will create more opportunities to cross-sell services to each other's customers, as well as strengthen engagement with common customers," MTQ said in a statement.
Neptune reported a net loss of $39.9 million for the year ended June 30, on the back of a $35 million goodwill impairment which followed a comprehensive review of operations.