Programmed Maintenance Services Ltd
(ASX:PRG) has announced its intention to acquire designer and installer of integrated electrical and communications systems KLM Group Ltd
(ASX:KLM) and a capital raising to fund the acquisition.
Programmed says is to make an off-market takeover bid to acquire all the issued shares in KLM for 47 cents a share for a total $28.1 million cash.
KLM directors have confirmed that they intend to unanimously recommend that shareholders accept the offer in the absence of a superior proposal.
Programmed Maintenance Services plans to raise $65 million through a four for 19 non-renounceable entitlement offer to fund the acquisition.
The company hopes to raise $50 million from institutional investors and $15 million from retail investors.
The offer price is $3.80 a share, which is a 15.7 per cent discount to the volume weighted average price of Programmed shares up to the close of trade on October 28.
Programmed Maintenance Services 2009 net profit remained relatively unchanged from the year before.
