PEP Raises Bid for Spotless Takeover

The buyout firm Pacific Equity Partners (PEP) proves its persistence to takeover the industrial services company Spotless Group (SPT) as it raises its bid proposal to $2.68 per share from last month's $2.63. The revised proposal of PEP increases the value of the industrial services company from $698 million last month to $711 million.

Spotless rejected PEP's offer last November 17 on the grounds that the offer is too low compared to the value of the company. Now that a revised proposal has been given by the buyout firm, Spotless scheduled a meeting with PEP's management to offer a management presentation to ensure that it fully understands the view on each of Spotless businesses. The presentation will include diligence matters in relation to a change of control and matters raised by PEP.

As the buyout firm's statement that it controls 19 per cent of Spotless's shares through commitments from its shareholders, it is still conditional if PEP will be acquiring 100 per cent of the industrial services company. The management of Spotless reported that the talks between the two companies may or may not lead to an agreement of both of the companies as the outcome still depends whether the Spotless Directors approve of the arrangement.

Spotless Group reported a net profit of $42.8 million in 2011 financial year. The shares of the industrial services company gained 5.2 per cent on the ASX.