Shares in the staffing and facilities maintenance business Programmed Maintenance Services have soared almost 70 per cent on news of a takeover offer from a Japanese company.
The $778 million offer from Persol — one of the Japan's largest labour hire businesses — has been unanimously accepted by Programmed's board.
Programmed chairman, Bruce Brook, said the 100 per cent cash proposal represented compelling value and provided an attractive opportunity for Programmed shareholders to realise this value.
Mr Brook said the board was first approached by Persol around a year ago in a discussion about the company's strategic direction and in the last few weeks the discussion turned to "value".
"We weren't shopping the company around — this was the only approach we had," Mr Brook said.
"We've only solved the value question in the past few weeks."
The offer represents a 68 per cent premium to yesterday's closing share price and 69 per cent on the three-month weighted average.
Programmed's humble origins
Programmed share price hit a trough of around $1 a share early last year as it struggled dealing with its $650 million takeover of rival labour hire business Skilled.
The company traces its origins back to a painting business started by Norman Miles in Victoria 65 years ago.
From a single car and three painters, the business has grown to 20,000 employees servicing around 10,000 customers in Australia and New Zealand.
The company listed on the ASX in 1999.
Under the deal, existing management — including chief executive Chris Sutherland — will be retained and Programmed will continue to be headquartered in Perth.
Persol has a market capitalisation of $5.7 billion and was founded by Yoshiko Shinohara, who spotted the opportunity for starting a labour hire company in Japan while holidaying in Sydney in the 1970s.
The deal is subject to Foreign Investment Review Board approval and a shareholder vote — via a scheme of arrangement — which is expected to be finalised in October.
At 1:00pm (AEST) Programmed was trading just below the offer price at $2.99 per share.
