Downer to woo Spotless with $1.3b offer

Downer set to launch $1.3b bid for Spotless

Downer set to launch $1.3b bid for Spotless

Downer EDI is reported to be in the market for shares in Spotless Group ahead of launching a $1.3 billion bid for the services contractor.

The Australian Financial Review says UBS is seeking up to 15 per cent of Spotless at $1.15 a share, well above today's close of 72.5¢.

Spotless provides services to a variety of industries, including mining and oil and gas, where it delivers facility maintenance, catering, waste management, cleaning, security and more.

Now attention turns to Downer's $1.15 a share takeover bid for Spotless and associated equity raising.

"The acquisition of Spotless is a significant investment in Downer's strategy to expand its capabilities and strengthen its position as a leading provider of services to customers in Australia and New Zealand", Downer Chief Executive Grant Fenn said in a statement.

The trade represented a 14.9 per cent stake in Spotless which, when added to Downer's existing 5 per cent economic interest, takes its stake to 19.9 per cent.

The offer will need to achieve at least 90 per cent shareholder support and regulatory approval to proceed.

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