Spotless rejects takeover

Company News

Spotless Group (ASX:SPT) has rejected a $656.9 million takeover offer from an undisclosed private equity firm.

The company, which provides a range of outsourced facility labour services like cleaning, catering and maintenance, said its directors reviewed the proposal in detail and believed it did not reflect the fundamental value of the company.

Spotless is being advised by Goldman Sachs and Clayton Utz, and said the cash offer of $2.50 per share was not ideal in the context of a change of control.

At the end of March, Spotless faced legal action by a union claiming the company threatened employees with the loss of Sunday shifts and overtime payments, unless they signed new workplace agreements. The company said the claims were false.

Spotless reported a profit of $17.4 million in the year ending December 31, 2010.


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