Johns Lyng (JLG AU): PEP's A$4/Share Offer Looks Light

• A month ago, Integrated building services provider Johns Lyng (JLG AU) fielded a non-binding Offer, by way of a Scheme, from Aussie fund manager Pacific Equity Partners (PEP).

• JLG and PEP have now entered into a SID at A$4/share, a 77% premium to undisturbed. CEO Scott Didier, JLG's largest shareholder with 17.64%, is supportive.

• A shareholder vote is expected to take place in October, with the transaction potentially wrapping up in November. This may need more gruel.

Conclusions First

• There will be some disgruntled shareholders.

• $4/share is a level the share price has failed to stay above over the past year. And it is around the level where shares cratered last August after JLG announced its FY24 results.

• Analysts forecast a price range of $3.15 to $4.00/share. But those figures do not include a takeover premium.