A Madrid base service and infrastructure company, Ferrovial SA offered a total of A$715 million in cash to acquire more than half of stakes in Broadspectrum Ltd. The new offer makes by the company comes after the Australian company rejected its previous offer a year ago that value the company at A$1 billion.

According to the Bloomberg, the new offer by Ferrovial means that it is offering to buy the company at A$1.35 per share which is 59 percent higher than its current valuation as of December 4th. The offers cause many investors to flow in buying the share causing its price to increase by almost A$0.45 cent.

Broadspectrum is currently facing lots of problems and it is reflected in it shares as the shares are currently traded at half of its value a year ago. The company which is previously known as Transfield Services, however, might reject the offer again.

The Sydney Morning Herald reported that the company had notified its investors to take no action regarding the proposal and it will announce its decision in a press conference on Tuesday. This comes after many of its main investors including its largest shareholder, Allan Gray feels that the offer is undervaluing the company.

An analyst from Allan Gray Australia Pty, Richard Whiteoak told Bloomberg that "We view it as an opportunistic bid, and we don't think it recognizes the full value of the company". The offer made Ferrovial is lower compared to its previous and very low compared to the company highest value in May, A$1.70.

Ferrovial CEO, on the other hand, counter some arguments that said the company is purposely undervaluing the company as Broadspectrum is still in the negotiation phase for its latest contract. The company is currently trying to renew its five-year contract to manage immigration detention centers for Australia.

Business Insider reported that the company CEO, Íñigo Meirás said that, "If the offer is successful, it would represent a solid step in Ferrovial's strategy to expand its global footprint and the Group's presence in Australia. Ferrovial has a proven track record of disciplined acquisitions and successful integrations."

He also added that the acquisition will meet the company's "strict investment criteria". The company is currently managing lots of assets in a different country including the Heathrow Airport.

According to the Australian law, any acquisition must go through the Australia's Foreign Investment Review Board. The offer must be approved by at least 50.01 percent of shareholders for the offer to be accepted.