PMP bid good news for shares

PMP has received a "highly conditional non‑binding indicative" takeover offer in a range between 68 cents and 78 cents a share, which the article says values the company at up to $252 million.

PMP warned of a substantial profit downgrade earlier in the week, sending the stock to a record low (about 25 cents), then the takeover announcement pushed the shares up to a six‑month high, closing 37% higher at around 62 cents.

The board would not disclose the bidder’s identity or structure; industry figures are split, and one source in the article speculated an offshore industry buyer could be more likely, while other commentary did not rule out private equity.

PMP said it is facing a combination of structural issues, economic drivers and a deferral of advertising spend into the first quarter of fiscal 2013, reflecting wider printing‑sector pressure from over‑capacity and an advertising slowdown.

Chairman Ian Fraser said the directors are considering the approach and will keep the market informed of developments — the offer is described as highly conditional and non‑binding, so further consideration and updates are expected.

A successful takeover at the offered range would likely deliver a premium to shareholders compared with the recent low, but the offer is non‑binding and conditional, so shareholders should watch for firm terms and any formal recommendation from the board.

Yes — the article notes that five years earlier PMP rejected a $1.95 to $2.15‑a‑share bid from unidentified private equity firms, showing previous takeover interest in the company.

Industry figures quoted in the article, including Peter Hall of one of PMP’s largest shareholders, said the sector is ripe for consolidation and speculated a new owner might use PMP to acquire other assets, so the offer could be part of broader consolidation trends.