PCH resumes takeover talks with Cape

Malaga-based scaffolding and form-work supplier PCH Group Ltd has resumed discussions surrounding a potential takeover bid with UK-based industrial services company Cape PLC, two months after earlier talks faltered.

The talks could lead to Cape making a recommended offer for the company, but there was no certainty that this would occur, PCH said in an announcement.

PCH had received a takeover bid from Cape valued at 90 cents per share in February, but labelled the offer both inopportunely timed and undervalued.

According to PCH, when Cape did not improve its bid following the first part of a two-stage due dilligence process, the company refused to provide it with further information as it preferred to be circumspect given that the two groups were competitors in certain markets.

Cape subsequently withdrew from talks, saying it had been unable to have meaningful engagement with the company.

PCH shares were up 17.9 per cent to 99 cents at 1:45 today.

The full text of a company announcement is pasted below

Previous disclosure to the market by PCH indicated that discussions with Cape PLC regarding a possible offer for shares in PCH had terminated. Following a fresh approach by Cape, further discussions will now be held which could lead to a recommended offer being made by Cape for shares in PCH.

As was the case when the discussions with Cape were first announced, there is no certainty that a firm offer will emerge from these discussions.