Spotless Group Limited (ASX:SPT) has confirmed speculation and announced it has received a $698 million takeover bid from private equity fund Pacific Equity Partners.
The cleaning, catering and maintenance services provider has rejected the offer of $2.63 per share, a 12 per cent premium to its last traded price.
Spotless says it intends to take no further action, claiming the bid is too low and doesn’t reflect the fundamental value of the company.
Shares in Spotless group have risen 20 per cent this month amid rising speculation a bid could be imminent.
Spotless Group rejected a $657 million takeover offer from private equity firm Blackstone in May.
Spotless Group’s net profit eased 0.5 per cent to $42.8 million in fiscal 2011.
