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Skilled Group Limited (ASX:SKE) has knocked back a merger proposal Programmed Maintenance Services Limited (ASX:PRG) launched at the end of last year.
The staffing services company says the deal is not compelling and does not reflect the value of the company’s shares or the contribution it would make to a combined group.
Chairman Vickki McFadden says Skilled Group remain open to considering a transaction on terms that appropriately reflect the company’s value and contribution to a merged group.
Under Programmed Maintenance Services’ original proposal each company would hold 50 per cent of the combined group, anticipated to create synergies of more than $20 million per annum.
Skilled Group reported a net profit of $44.2 million in the 2014 financial year.
