Saying it’s in the best interests of all shareholders to minimise the ‘period of disruption’, Spotless yesterday announced that it had agreed terms with PEP based on which it intends to provide PEP non-exclusive due diligence.
‘Spotless advised PEP on 9thJanuary 2012 that, in the current circumstances, the lowest price at which the Spotless Board would be willing to unanimously recommend shareholders vote in favour of a scheme of arrangement was a total cash consideration of not less than $2.80 per Spotless share. This position has not changed, said the Spotless statement.
‘However, the Spotless Directors sought, and carefully considered, the views of Spotless shareholders with respect to the Company’s continued engagement with PEP. Particular consideration was given to the potential damage to Spotless’ business and long-term shareholder value caused by the uncertainty and operational risk associated with a protracted situation with respect to PEP’s proposals.
‘Recognising this potential damage, the Spotless directors have concluded that it is in the best interests of all shareholders to minimise the period of disruption and offer PEP access to non-exclusive due diligence subject to agreement of terms for that due diligence process and reaffirmation of PEP’s prior commitments.’