Spotless looks to mop up remaining Taylor shares

Tuesday 25th August 2009

Spotless Services NZ, the laundry, hospitality and cleaning contractor, offered to mop up the remaining shares in Taylors Group, allowing it to fully merge their operations.

Spotless Services, a subsidiary of ASX-listed Spotless Group, offered $2.15 per share, made up of $2.08 cash plus a fully-imputed dividend of seven cents for the remaining 34% of Taylors. The offer amounts to a 7.5% premium on the current share price of $2. The shares have surged 53% in the past six months.

“An acquisition of the minorities in Taylors that we do not already own will enable us to manage Taylors in a more integrated and simplified manner,” said chief executive Josef Farnik, in a statement. “We continue to be committed to the New Zealand market and intend to continue to grow the Taylors business.”

The offer is subject to Spotless boosting its shareholding to 90%, which would force a compulsory takeover, and Overseas International Office approval. The bid also requires the share price to remain stable while the offer is open in which the NZX50 gross index must not decline more than 10%.

Taylors’ directors will obtain an independent adviser’s report before making a recommendation to shareholders.

Spotless shares traded at A$2.46 on the ASX yesterday and have climbed 28% in the past three months.

Businesswire.co.nz

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