Johns Lyng shareholders will vote in October on a Pacific Equity Partners takeover offer that has been backed by the board committee.

The insurance building group’s biggest shareholder, CEO and MD Scott Didier, supports the all-cash offer. He holds 17.64% of shares and has entered a co-operation deed to vote for the takeover.

The Johns Lyng board committee comprising non-executive chair Peter Nash and non-executive directors Peter Dixon, Alison Terry and Alexander Silver “unanimously recommends” the deal.

The offer values Johns Lyng equity at about $1.1 billion and implies an enterprise value of $1.3 billion. The $4 cash-per-stock bid represents a 77% premium on Johns Lyng’s closing price on May 15 – the day before the takeover bid was received.

“The [committee’s] unanimous recommendation was based on a thorough evaluation of a range of factors … and taking into consideration underlying business performance over the last two years and current business momentum,” Mr Nash said.

The offer comes as Johns Lyng faces its biggest challenge in years. In February, it reduced its earnings outlook and announced a cost-cutting program after a weak first half.

The core insurance building and restoration services division is the biggest by revenue. In the December half, revenue fell to $531.8 million from $554.5 million. The division provides catastrophe rebuilding services for insurer clients and governments. It also has contracts with insurers to provide restoration for business-as-usual insured events.