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Australia's PEP makes sweetened offer for Spotless-sources
April 24, 2012 / 2:46 AM / 6 years ago

Australia's PEP makes sweetened offer for Spotless-sources

MELBOURNE, April 24 (Reuters) - Pacific Equity Partners (PEP) has made a second takeover offer for Spotless Group that would be worth about A$745 million ($766.7 million), closer to the amount that the business services company has been seeking, sources with knowledge of the deal told Reuters.

The buyout firm’s first offer is an unchanged full cash offer at A$2.68 ($2.76) a share. The second is the same cash offer plus a promised cash return after the sale of a non core asset that would take the deal value above A$2.8 a share, said the sources, who declined to be named because the talks are confidential.

One of the sources said the second option, which entails selling the underperforming coat hanger business Braiform, would be worth at least around A$745 million.

PEP declined to comment.

Spotless, which has been in talks with PEP on a deal for five months, has maintained it will not back an offer below A$743 million, or A$2.80 a share. ($1 = 0.9717 Australian dollars) (Reporting by Victoria Thieberger & Narayanan Somasundaram; Editing by Chris Gallagher)

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