Programmed Maintenance Services (PRG) has sweetened its original takeover offer for Skilled Group (SKE) whose directors are poised to agree to the terms, which will create an enlarged entity worth about $750 million.
Programmed lifted its offer terms in the four weeks of merger talks since the original approach, rejected in January, was renewed in May.
Both Programmed and Skilled went into trading halts on the ASX yesterday morning, with Programmed saying the halt was for an announcement “regarding a possible acquisition”, while Skilled said it was seeking a halt because of the announcement of “a potential transaction".
SKE vs PRG 1Y – Skilled, Programmed halted as merger deal finalised
Skilled, Australia’s biggest workforce provider, rejected Programmed’s original takeover in January.
Programmed had originally proposed a merger of equals, based on an offer of 0.5032 Programmed shares and 25 cents for every Skilled share, with both companies agreeing then that merging the two businesses would deliver $20 million in cost savings.
The talks were renewed in late May and the talks seen to have been more fruitful this time.
Both companies have asked the ASX for a trading halt until the start of trading tomorrow.
The deal is likely see the merged company created with a combined value of $700 million to $800 million.
