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Taylors directors urge investors not to sell to Spotless, commission appraisal

Friday 28th August 2009

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The independent directors of Taylors Group, the New Zealand-based laundry company that runs Laytons Linen Hire, have advised investors not to sell to major shareholder Spotless Services NZ until they’ve had an appraisal of the offer.

Taylors chairman Trevor Kerr and director Paul East, who were appointed to advise shareholders on the offer, have commissioned investment advisory group Grant Samuel to appraise the offer and law firm Russell McVeagh for advice.  

The Grant Samuel report is expected to be completed in mid-September, and Kerr and East want shareholders to wait until they’ve reviewed the appraisal before making a decision on the takeover bid.  

Spotless Services NZ, the laundry, hospitality and cleaning contractor and subsidiary of ASX-listed Spotless Group Ltd., hopes to mop up the remaining 34% shares in Taylors and fold it into its existing business.  

It offered $2.15 per share, made up of $2.08 cash plus a fully-imputed dividend of 7 cents a share, a 2.4% premium on the current share price of $2.10, which has surged some 17% this week.  

The offer is subject to Spotless boosting its shareholding to 90%, which would force a compulsory takeover, and Overseas International Office approval. 

Separately, Australia’s Spotless Group today raised some A$71 million in an institutional placement, issuing 32.8 million shares at A$2.16 a share. The proceeds will be used to cut gearing towards the lower end of its target range, the company said in a statement.  

The shares gained 1.5% to A$2.65 on the Australian stock exchange in trading today.

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