Spotless Group spurns buyout firm's offer

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Spotless Group, a global provider of services including laundry, cleaning and maintenance, has spurned a takeover approach from a private equity firm that was pitched at a 28 per cent premium to the last trading price of the shares.

Spotless received an indicative, non-binding and conditional proposal from a buyout firm for 100 per cent of the shares at A$2.50 apiece, it said in a statement.

The offer values Spotless at A$648 million compared to its current market value of $507 million. It didn't indentify the firm.

"The Spotless directors have reviewed the proposal in detail and believe that it does not reflect the fundamental value of the company in the context of a change of control," it said.

"The directors do not intend to take any further action in relation to the proposal."

Shares of Spotless have shed a quarter of the value in the past 12 months and were trading above A$3 in March last year. They were last at A$1.955 on the ASX and at $3.87 on the NZX, where they trade infrequently.

Spotless said it is being advised by Goldman Sachs and Clayton Utz.