Spotless Shareholders Threaten to Oust Board

Spotless Group (SPT) shareholders are close to calling an extraordinary general meeting and oust its board after bidder Pacific Equity Partners (PEP) disagreed to raise its bid to $2.80 without access to due-digiligence, as suggested by the facilities and services company. PEP said yesterday that the proposed price was unjustified and unrealistic, and added that they cannot continue to process the takeover without access to the company's books and internal documents.

Shareholders of the facilities and services company were unhappy with how the takeover process is going and felt that the board is not listening to them. Unlike the board's decision, the investors of Spotless believe that PEP deserves to have an access to due-diligence.

If the private equity would still refuse to give into the group's demands, shareholders are going to call for an EGM and move to fire the board. This will require them five per cent of the issued share capital.

Spotless shares closed yesterday 2 cents weaker to $2.35.