Shares in crane operator Boom Logistics Ltd soared in early trading on the Australian Securities Exchange (ASX) following the announcement that Boom is a target of a $240 million takeover proposal.

Boom was 12 cents, or 40 per cent, higher at 42 cents at 1010 AEST on Thursday.

Boom Logistics confirmed in a statement to the ASX that it has received a highly conditional, confidential and incomplete proposal from Archer Capital Pty Ltd to acquire Boom through a scheme of arrangement at an indicative price of 52 cents per share.

"In line with the recent market announcements, management are in the process of quantifying the impacts of the improved operating environment and the contract wins on the expected financial performance of the business," Boom said." Once the outcomes of this work are finalised, the Board will be in a position to assess any proposal."

Boom Board advises its shareholders to take no action at this stage.

Boom announced yesterday that it has secured a new three year contract to supply cranes and associated services to BHP Billiton Iron Ore Operations in the North West, with two further two year options to extend. Revenue from this contract is expected to be around $35 million over the next 3 years.

The logistics company also won a new 3-year contract to supply cranes and associated services to Anglo American Metallurgical Coal Operations in Central Queensland. Boom is expected to earn estimated revenue of $9 million over the next 3 years from this contract.

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