Jefferies expects premium offer price for Australia's Johns Lyng Group

Johns Lyng

11/06/2025 20:39

** Australian property services business Johns Lyng Group JLG.AX on Wednesday reported receiving a buyout offer from fund manager Pacific Equity Partners (PEP), with transaction details unknown

** Jefferies finds lack of bid price disclosure 'puzzling'

** Brokerage provides multiple valuation scenarios with different bid prices, resulting in an avg price of A$3.97/share, a ~56% premium over Friday's closing price

** JLG could get new bidders if PEP makes a public offer, especially with the Australian M&A market heating up this year, says Grady Wulff, market analyst at Bell Direct

** The struggling property services business in FY24 posted revenue of A$1.16 bln ($754.35 bln), 5-6% below expectations, and also below its own forecast of A$1.21 bln

** Brad Smoling, MD at Smoling Stockbroking, says there are few precedents for private equity reviving struggling property services firms

** JLG down 20.1% YTD, despite advancing ~17.7% on Wednesday

($1 = 1.5378 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))