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Spotless extends offer for Taylors a second time

Wednesday 21st October 2009

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Spotless Group extended its offer for the remaining shares in Taylors Group by one week, the second time it has pushed back the closing date, reflecting a slow uptake from minority holders in the laundry business. 

Holders of Taylors now have until November 12 to accept Spotless’s offer of $2.25 a share. Spotless already owned 66% of Taylors and had increased its interest to 83.6%, according to a substantial security holder notice on October 19. That’s up from 81.5% in its previous filing.

The offer period is final and the price won’t be increased, according to the Spotless statement. 

Spotless raised its offer from $2.08 on Sept. 18 after talks with Taylors independent directors Trevor Kerr, chairman, and Paul East. They recommended acceptance after the increase, with East saying he will sell his shares into the offer. Grant Samuel valued the shares at between $2.22 and $2.58 a share, including a premium for control, and said it was unlikely a rival bidder would emerge.

Kerr said last month that Taylors shares are likely to fall if the offer, which needs 90% acceptances, fails.

Taylors shares last traded at $2.18 on October 1. Spotless traded at A$2.65 on the ASX yesterday and has climbed 16% in the past three months.

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