Johns Lyng Group (ASX: JLG) Company News – Takeover bid
Trading Halt on Takeover Speculation
- On Tuesday, June 10, 2025, Johns Lyng Group shares were placed in a trading halt. The company requested this halt following “media speculation regarding a potential change of control transaction” and stated it would last until either a further announcement is made or trading resumes on Thursday, June 12, 2025.
- The trading halt follows a report in the Australian Financial Review that Pacific Equity Partners (PEP), a private equity firm, has made a takeover offer for Johns Lyng. PEP is reportedly conducting exclusive due diligence, but there is no certainty a deal will be reached.
- The company’s ASX statement confirmed the halt was directly related to the media speculation about a possible buyout.
Background and Market Context
- Johns Lyng’s share price closed at $2.54 last Friday and has not traded since the halt was implemented.
- The company’s shares have experienced significant pressure over the past year, falling 57% in the last 12 months, largely due to disappointing earnings guidance and a 33% drop since January 2025.
- Rumours from the Chanticleer in the Australian Financial Review AFR.com are that Australias largest Private Equity Fund, Pacific Equity Partners are set to offer around $900m for the company, a 25% premium to the last closing price
Other Takeover Interest
- The AFR report also noted that Johns Lyng was approached by other private equity firms in recent months, including KKR (USA) and EQT (Sweden), but neither resulted in a transaction.
Next Steps
- The market is awaiting a formal announcement from Johns Lyng regarding the outcome of the takeover talks or any other material developments. Trading is expected to resume no later than Thursday, June 12, 2025, unless an earlier announcement is made.
- With multiple global Private Equity Funds having shown interest in the company in the last 6 months, we expect a potential counter bid for JLG
With the LA fires and tornado/hurricane activity and the east coast floods last year in Australia, we see this bid as very opportunistic given the future business from insurance claims set to be in excess of $200B in the US and $1.7B in Australia, of which JLG has significant operations
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