QIC has bid $0.975 cash for PEA, representing a 35% premium to the pre-bid price.  In the absence of a superior proposal, and subject to an Independent Expert concluding it is in the interests of shareholders, the Directors support the proposed Scheme.  This includes KPS founder Ken Hall, who speaks for 48.7% of PEA stock.  We have long held a positive view on PEA, with a strong business model providing healthy recurring revenue under long-term contract.  This visibility causes it to positively stand out in the typically volatile mining services space.  While a competing bid is not out the question, we set a target price of $0.975 to match the QIC bid price.  The stock is trading very close to this level and we change our recommendation to HOLD (prior BUY) as a result.

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