Shares in labour hire group Programmed Maintenance have risen strongly after a $778 million takeover bid by Japanese HR giant Persol.
At 1150 AEST on Friday, shares in Programmed were $1.17, or 65 per cent, higher at $2.97.
The Japanese human resources giant's $3.02 per share bid represents a 68 per cent premium to the $1.80 closing share price on Thursday..
Tokyo-listed Persol first approached Programmed 12 months ago but Programmed managing director, Chris Sutherland said executives only settled on a value in recent weeks.
"It's very important our partner share a similar perspective on strategy, customer service and the value of people," Mr Sutherland said.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Programmed said the offer price puts its enterprise value at $992 million and the Board has unanimously recommended the offer to its shareholders.
The company, which provides staffing, maintenance and facility management services around the country and across the Tasman, said the cash proposal delivers certainty of value and ensures fluency in its staffing, operations and customer service operations across New Zealand and Australia.
"The Programmed Board has unanimously concluded that the 100 per cent cash proposal from PERSOL represents compelling value for Programmed's shares and provides an attractive opportunity for Programmed shareholders to realise this value," Programmed chairman Bruce Brook said on Friday.
Mr Brook, a former deputy chief financial officer at ANZ, said the takeover would not impact the current structure of the business and ties in well with both companies' plans for regional expansion.
"They want to enter the Australia and New Zealand market and Programmed provides the platform for that," Mr Brooks said.
"Persol do not have our asset management and facilities management capabilities in their kit bag."
A scheme booklet will be sent to shareholders in September before a meeting in October.
"The transaction should be complete sometime in October, subject of course to shareholders supporting the deal," Mr Brooks said.
The offer by Persol, one of Japan's biggest staffing companies, will be subject to regulatory conditions including approval by the Foreign Investment Review Board.
