UK-based industrial services company Cape PLC has confirmed it is in discussions with Malaga-based scaffolding and form-work supplier PCH Group Ltd, but would not guarantee it would make an offer.
PCH confirmed yesterday it had received a 90 cents-per-share takeover proposal, and said the offer merited further discussion.
The company believed the offer was undervalued and poorly timed, but said it would continue discussions with the suitor in hope of securing a higher takeover price.
The full text of a Cape announcement is pasted below
CAPE PLC ("CAPE" OR THE "COMPANY")
The Board of Cape PLC (the "Board") notes the recent press speculation regarding a potential acquisition of PCH Group Ltd ("PCH") by Cape.
The Board confirms that Cape is in discussions with the Board of PCH which may or may not lead to Cape making an offer for PCH. These discussions are preliminary, and there can be no certainty that an offer for PCH will be made.
PCH is quoted on the Australian Stock Exchange. Its business is diversified across a range of industries, with services provided for construction and maintenance activities in the natural resources, residential and commercial property sectors. It has operations in Australia, South-East Asia, UAE and the Caspian Region. It reported revenues for the twelve months to 30 June 2006 of A$121m.
Further announcements will be made as appropriate.
