Downer announces Spotless bid unconditional

Downer waives outstanding conditions as Spotless continues to urge shareholders to reject bid.

Downer Services has declared its $1.2 billion takeover bid for Spotless Group unconditional.

Downer announced on Monday, 19 June, it had waived all remaining outstanding conditions and introduced accelerated payment terms.

The offer is still scheduled to close on Thursday, 29 June.

On Friday, 16 June, Downer reported it had increased its interest in Spotless to 36.44 per cent – making it the largest shareholder in the cleaning, catering and facilities management group.

Spotless urges shareholders to reject offer

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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