Downer EDI yesterday moved to majority control of Spotless announcing a 50.3% stake just after 11am. That means the closing date for the $1.2 billion bid is now automatically extended to 7pm Tuesday, July 11.
In fact Downer EDI CEO, Grant Fenn is expected to have more to say at a business conference in Sydney later on Wednesday.
Downer ’s second announcement to the ASX yesterday was after earlier revealing it had lifted its stake in the services company to 49.063% by Monday night.
Spotless’s board has continued to urge investors to reject the offer, and again told investors on Monday to ignore Downer’s attempts to “pressure” shareholders into accepting the $1.15 a share offer Spotless chairman Garry Hounsell said shareholders would achieve more value over the medium term by rejecting the Downer offer. That is now all moot. He said yesterday the Spotless board “will engage” with Downer about bard representation.
The only question to be settled is the final level of Downer’s holding in Spotless. Downer shares rose 2.2% to $6.34.
