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Spotless extends offer for Taylors

Wednesday 7th October 2009

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Spotless Group extended its offer for the remaining shares in Taylors Group by two weeks, reflecting slow uptake from minority shareholders in the listed laundry business. 

Holders of Taylors now have until November 5 to accept Spotless’ offer of $2.25 a share, after the closing date was extended from October 22. Spotless already owned 66% of Taylors and had increased its interest to 73.5%, according to a substantial security holder notice yesterday. That’s up from 68.3% in an October 1 filing. Shares of Taylors were unchanged at $2.18, having soared 41% in the past three months.

Spotless raised its offer from $2.08 on September 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. 

Shareholders in Taylors will be entitled to a fully-imputed dividend of 7 cents a share as part of the offer. Spotless last traded at A$2.54 on the ASX and has climbed 14% in the past three months.

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