Johns Lyng Group shares entered a trading halt today after a newspaper reported it has received a takeover approach from Pacific Equity Partners.  

Shares in the building and restoration services company closed on Friday at $2.54 – after reaching as high as $6.19 in intraday trading in the past 12 months – giving it a $719.1 million market capitalisation.

“The trading halt is requested following media speculation regarding a potential change of control transaction,” the company said.

The Australian Financial Review’s Street Talk column said Sydney-based Pacific Equity Partners has made an approach, secured exclusivity and is “well entrenched in due diligence”.

Johns Lyng said in February it had cut costs to address “challenging” conditions and had reduced its earnings outlook after a weak first half.

Revenue for the six months to December dropped to $573.1 million from $610.6 million in the previous corresponding period, amid a relatively benign spell for catastrophes.

The trading halt will continue until the release of an announcement or the start of normal trading on Thursday.