The Engineering group Downer is now seeking seats on Spotless’s executive board after their takeover attempt of the company, one of the most notable catering and commercial cleaners in Melbourne and Australia. This began after Downer successfully managed to acquire the majority of Spotless’s shares, about 50% (50.3%).
Downer made an announcement on June 20th that it had managed to successfully secure 50.33% of Spotless’ shares, following its bid based attempt at a hostile takeover last March.
Spotless, known for having handled the catering and cleaning of the Melbourne Cricket Ground, opposed the bid, but with Downer now controlling half of its shares, is now under their control. Spotless has recently released a statement, saying that it would negotiate with Downer regarding the board’s composition.
Garry Hounsell, Spotless’s Chairman, said to the Australian Securities Exchangethat the Spotless board does not believe that Downer’s offered bid represent the adequate value for the company’s shares, but seeing as how Downer now owns half of the company’s share, will talk with them to ensure the best interests for both Spotless, and its other shareholders.
Spotless, one of the major commercial cleaners in Melbourne, holds a considerably notable string of lucrative cleaning service and facility maintenance contracts. The company has stated that, during the negotiation period with Downer, that it would focus on ensuring that their customers received the same quality of service they always had on a ‘business as usual’ basis, they said.
Downer is currently doing its best to persuade the remaining Spotless shareholders to accept the engineering group’s offer of $1.15/share, even going so far as to extend the deadline from tomorrow up to the 11th of July due to Downer’s majority control.
Downer has already said that it would not alter its offer, which values Spotless at a total of $1.3B, seeing as there were no better offers from other groups. Spotless’s performance in the Australian market has generally been seen as average, since it refloated in 2014 following leaving private equity ownership.
Shares in Spotless closed last June 20 with a value of $1.15, lower than the prior closing by 0.5c, whilst Downer’s shares closed higher at $6.34, having increased by 14c.