Bradken's takeover offer by Hitachi

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To whom it may concern:

Company name: Hitachi Construction Machinery Co., Ltd.

Representative: Yuichi Tsujimoto, President (Stock code: 6305; First Section of the Tokyo Stock Exchange)

Inquiries: Haruko Ido, General Manager
Public Relations & Investor Relations Dept.
Public Relations Strategy Office
(Ph: +81 (0)3-5826-8152)

Notice on Commencement of Share Takeover Offer for the Acquisition of Share in Australian Corporation “Bradken Limited”

In reference to the “Notice on Execution of Agreement with Regard to Acquisition of Share in Australian Corporation Bradken Limited and Scheduled Commencement of Share Takeover

Offer for the Acquisition” dated October 3, 2016, where Hitachi Construction Machinery Co., Ltd. (the “Company”) announced that it would commence a takeover offer (the “Takeover

Offer”) for all issued shares of common stock in Bradken Limited, which conducts metal casting and operates manufacture and distribution services for metal casting products

(Australian Stock Exchange: BKN; Head office: Newcastle, Australia; Chairman: Phillip Arnall; “Bradken”), the Company now announces as described below that it will commence the Takeover Offer today on November 1, 2016. With regard to the Takeover Offer, the Company on October 25, 2016 submitted the Bidder’s Statement to both the Australian

Securities Investments Commission and Bradken, made it available for public inspection at the Australian Stock Exchange and also today dispatched it to all shareholders of Bradken, in accordance with Australian takeover offer regulations.

The Takeover Offer is an amicable one, and the approval of Bradken’s board of directors has been obtained with the Company and Bradken having executed Bid Implementation

Agreement related to the implementation of the Takeover Offer. The Takeover Offer will be  conducted on the conditions that more than 50% of the total amount of issued shares in

Bradken (on a fully diluted basis) are tendered, that clearance is obtained from competition law authorities in each of Australia, the USA, Canada and South Africa and the Foreign

Investment Review Board of Australia, and that other requirements ordinarily stipulated for similar transactions are satisfied.

1. Offer Price: AUD 3.25 per common share
2. Offer Period: From November 1, 2016 through February 10, 2017

Note: If the conditions of the acquisition are not satisfied, the Company may extend the Offer period, so long as it does not exceed a period of six months from the commencement.