Downer extends Spotless deadline for second time

Downer sets new date and terms for Spotless Group takeover offer.

Downer EDI Limited has extended its $1.2 billion takeover offer of Spotless for a second time, with the deadline now set for Thursday, 29 June.

Downer has 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 statement Downer CEO Grant Fenn said the $1.15 per share offer provides a “full and fair price” for Spotless shares.

Downer extended the initial deadline by two weeks last month, announcing at the time that its final offer would close on June 14 instead of May 31.

Spotless has continually urged shareholders to reject the bid, with chairman Garry Hounsell stating last month the offer “does not represent adequate value for Spotless”.

The extension comes as the cleaning, catering and facility management group is faced with a second class action over its 2015 profit downgrade.

Law firm Slater and Gordon filed proceedings at the end of last month on behalf of shareholders who acquired an interest in Spotless shares from 25 August 2015 to the close of trade on 1 December 2015.

The statement of claims includes allegations of contraventions of the Corporations Act 2001 in relating to misleading or deceptive conduct and continuous disclosure obligations.

Earlier this year in February IMF Bentham and William Roberts Lawyers launched a class action against the cleaning and facilities management services group over its 2015 financial results.

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