Australia's Johns Lyng Group receives buyout offer from Pacific Equity Partners (updated)

Johns Lyng

11/06/2025 24:50

Recasts paragraph 1, updates with more details in paragraph 2, 10-12 and shares in paragraphs 3 and 4

June 11 (Reuters) - Shares in Johns Lyng Group JLG.AX surged on Wednesday to their highest level since late February after the struggling Australian property services business unveiled a takeover approach from local fund manager Pacific Equity Partners (PEP).

The company flagged that the offer gave Scott Didier, its largest shareholder, an opportunity to receive the consideration in scrip and retain a stake in the bought-out business.

Shares in the ASX-listed company gained as much as 19.3% to A$3.03. This gave Johns Lyng Group a market capitalisation of A$857.8 million ($558.60 million).

The stock hit its highest since February 25 and is on track for its biggest intraday climb on record.

PEP made the offer after market close on May 16 and has also been granted a period of exclusive due diligence.

Johns Lyng had emerged as one of the major underperformers during the February reporting season, slumping 31% on the day it released interim results.

Johns Lyng Group acquired Smoke Alarms Australia and Linkfire as part of a broader expansion strategy in 2023.

The company funded these deals through an equity raise of A$65 million underwritten by JPMorgan.

Last year, it also secured an 87.4% controlling stake in Keystone Group, a Queensland-based insurance building firm, further strengthening its footprint in the sector.

Australia's commercial real-estate outlook has been reeling from uncertainties as high living costs slowed the country's hot housing sector, but it is expected to improve as the central bank eases monetary policy.

Pension fund AustralianSuper and investment house Washington H. Soul Pattinson SOL.AX count themselves as top investors. Collectively, they own over a 9% stake in Johns Lyng Group.

Both firms did not immediately respond to a Reuters request for comment.

($1 = 1.5356 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Alan Barona)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))