Programmed Maintenance Services Limited (ASX:PRG) has responded to Skilled Group Limited
(ASX:SKE) knocking back its merger proposal saying it offered compelling value to shareholders.
The maintenance and staffing company says it remains convinced that the industrial logic for a merger remains strong.
Chairman Bruce Brook says the company is pleased that Skilled confirmed net synergies of around $20 million, but is disappointed with other aspects of the response.
He says the offer came at a premium to Skilled’s recent undistributed share price.
The company remains open to further discussions and still feels the proposal is in the best interests of both companies.
Programmed Maintenance reported a net profit of $9.75 million in the 6 months to September 2014.
