Australia's SKILLED Group, a provider of labor hire and workforce services, announced Thursday it has rejected the merger proposal from Programmed Maintenance Services that was received Dec. 17, 2014.
The Board of SKILLED Group, together with its advisors, reviewed Programmed’s proposal having regard to the extent of the industrial logic of combining the two businesses, taking into account the changes to SKILLED’s business profile over the last two years, the synergy (and dis-synergy) potential, and the terms of Programmed’s proposal.
The SKILLED Board has concluded that:
SKILLED Group Chairman, Vickki McFadden said, “The terms of Programmed’s proposal do not reflect the value of SKILLED shares and the contribution that SKILLED would make to a combined group.
“SKILLED has strong and diverse businesses in Workforce Services and Technical Professionals. In Engineering, SKILLED provides specialist operations and maintenance solutions with a good pipeline of growth opportunities. Marine Services covers the full project life cycle from exploration to construction, production and decommissioning. SKILLED’s ability to leverage its capability across the project life cycle positions the business to capitalize on a visible pipeline of more than $806.2 million (AUD 1 billion) of addressable offshore contract work in the medium-term.
“In the last two years SKILLED has made a number of acquisitions to strengthen and to diversify the Group. Additionally, SKILLED has invested in systems and process improvements. These investments have delivered $22.6 million (AUD 28 million) in cost savings in FY13 and FY14, are expected to deliver at least a further $12.1 million (AUD 15 million) in FY15, and will continue to benefit the Group.
“SKILLED has a bright future as a standalone business. The Board and management team are focused on executing our current strategy. With Angus McKay recently joining as CEO to lead SKILLED through its next stage of development, we will provide an update on our strategy to deliver value for SKILLED shareholders in due course.
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