Downer lifts Spotless stake to 30 per cent

Downer EDI Limited says it has increased its interest in Spotless Group to almost 30 per cent, despite the cleaning and facilities management group continuing to urge shareholders to reject the takeover bid.

Downer announced on Thursday, 15 June it has an interest in Spotless equivalent to 29.598 per cent.

Downer is offering $1.15 per Spotless share, valuing the company at $1.3 billion.

Earlier this month Downer extended its takeover offer for a second time, with the new deadline set for Thursday, 29 June.

The company also agreed to waive all remaining conditions, and introduce accelerated payment terms, if it reaches a 50 per cent acceptance level by Monday, 19 June.

In a business update issued on Thursday, 15 June, Spotless once again urged shareholders to reject the offer.

Spotless said it was demonstrating positive momentum, accelerated by the sale of a bundle of around 250 small cleaning contracts in New Zealand, as well as the commencement of its partnership with the new Royal Adelaide Hospital – Spotless’ largest PPP contract.

In addition to the Royal Adelaide Hospital, Spotless said it had also received a short-term extension of the SA Health contract under which Spotless provides support services to three metropolitan Adelaide hospitals.

Spotless chairman, Garry Hounsell said: “As we have consistently maintained, Spotless is at an inflection point, and today’s announcement is further evidence that the strategy reset is well on track and there is strong positive momentum in the business.”

“The board and management team have maintained their strong focus on delivering results and we continue to maintain our belief that Spotless can create more value over the medium term as an independent company.”

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Source: InClean