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Mining equipment and machinery maker Bradken has rejected an A$428m ($325m) takeover bid from private equity firm Pacific Equity Partners (PEP) and Koch Industries.

In December, the companies had made a bid worth A$872m ($662m) but it collapsed in January following a drop in commodity prices.

Bradken said the board considered the proposal and determined that it does not represent fair value and so decided not to engage further.

"The company is a ‘distressed asset’ and a suitable target for private equity firms."

IG market strategist Evan Lucas told Reuters that the company is a ‘distressed asset’ and a suitable target for private equity firms.

According to Bradken, it received an unsolicited indicative non-binding proposal on 1 April for acquisition at a cash price of $2.50 per Bradken share, by way of a scheme of arrangement.

The proposal was subject to various conditions, including financial due diligence.

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By GlobalData

During a major restructure process that took place between 2013 and 2014, Bradken is said to have eliminated 500 jobs due to lower revenue from its mining products, mineral processing and other divisions.

Australian-based Bradken is said to be one of the first companies to suffer as miners stop replacing their equipment during the industry downturn, Reuters said.