Programmed's takeover of KLM Group set to go ahead
- 19 January, 2010 10:22
The takeover of communications infrastructure services company KLM (ASX:KLM) by Programmed Maintenance Services (ASX:PRG) looks set to go ahead with the latter announcing it now has a relevant interest in KLM of 92.31 per cent.
The figure satisfies the minimum 90 percent acceptance condition set out in Programmed’s November 6, 2009 Bidders Statement.
The takeover bid, due to close on 20 January 2010, offers KLM shareholders $0.47 cash per ordinary share – a premium of 57.7 per cent to the volume weighted average price of KLM share for the three months to close of trade on 28 October 2009, according to KLM.
In a 29 October 2009 ASX statement KLM said that the last two years had bee n a challenging and difficult period for the company as it managed the implementation of a new ERP system, loss incurring contracts that impacted profitability and the then downturn in the commercial construction sector.
At the time managing director Peter Jinks said in the statement that the acquisition of KLM would provide Programmed with 700 staff across Australia and a range of valued-added services and product offerings in areas such as defence contracting, data and communications, and security and surveillance.
The acquisition is expect to see Programmed retain KLM management and staff and retain KLM as a stand alone subsidiary with its head office to remain in Melbourne.
Programmed provides staffing, maintenance and project services to a number of markets sectors in Australia, New Zealand and the United Kingdom.