Spotless rejects PEP's $700m takeover offer

This is Spotless' second rejection of a takeover bid by a private equity firm since May. At that time, Blackstone offered A$657 million, or A$2.50 a share, for the company, which was also rejected for being too low. PEP, meanwhile, offered A$2.63, a 12% premium on Spotless' last trading price.

However, Spotless has indicated that it would consider a sale for a higher price, which could result in a positive outcome for PEP.

"We are well prepared and willing to develop a compelling offer to shareholders and, with a reasonable level of engagement, we could move quickly to turn our proposal into a binding offer," a PEP spokesperson told Reuters following the rejection. "We hope to be able to engage with the board on this basis."

The newswire noted that PEP has also entered into pre-bid agreements with select shareholders, including Investors Mutual, Lazard Asset Management and Orbis Investment Management, for a 19.64% stake in Spotless.

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• Topics
• Australasia
• Buyouts
• Pacific Equity Partners
• buyout
• Australia