Cape in tilt for local scaffolder Email Print Normal font Large font September 15, 2007
Advertisement AdvertisementTHE British-based support services provider Cape Plc has launched another takeover bid for a local scaffolder, offering $230 million for PCH Group Ltd.
Cape Plc said yesterday its Australian subsidiary would bid for all of the shares of PCH at $1.30 in cash per share.
Cape is the parent of several service providers in the oil, gas and petrochemical power generation industries in 23 countries.
On Wednesday, Cape made a separate $100 million offer for another local scaffolding firm, Concept Hire Ltd.
PCH hires out and sells scaffolding, fire proofing, construction-related equipment and other services to the construction and resources sectors.
PCH advised its shareholders to take no action on Cape's offer. Cape had already expressed its interest in buying PCH, making a non-binding, indicative proposal to the PCH board in February. Talks between the two groups were terminated in early August.
"Cape remains of the belief that the acquisition of PCH represents an attractive opportunity for PCH shareholders to realise value, and wishes to allow PCH shareholders an opportunity to decide on the merits of the offer for themselves," Cape said.
Its offer represented a 91 per cent premium to PCH's closing price on February 21.
PCH closed yesterday up 13c at $1.30.
PCG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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