An engineering and infrastructure management service provider is making a tilt for a contractor that has been procured for a $2.6 billion mining project in Far North Queensland.
Downer EDI Services recently made a $1.3bn bid for Spotless Group, which won a huge tender to manage fly-in fly-out camps for Rio Tinto – the proponent behind the Amrun Bauxite Mine, 40km south of Weipa.
Downer is offering $1.15 cash per share, which would lift its stake in Spotless from 19.99 per cent to 100 per cent.
“The acquisition of Spotless is a significant investment in Downer’s strategy to expand its capabilities and strengthen its position as a leading provider of services to customers in Australia and New Zealand,” Downer chief executive officer Grant Fenn says.
“Downer’s all cash offer provides an excellent opportunity for Spotless shareholders to realise certain value for their shares, because the offer is at a substantial premium to recent trading prices.”
The offer is promised to provide Spotless shareholders with an opportunity to realise certain value for their Spotless shares, with no brokerage fees and no exposure to the potential risks associated with a continuing investment in Spotless.
The deal is subject to a number of conditions, including a 90 per cent minimum acceptance condition including Downer’s existing holding, all necessary regulatory approvals or consents being obtained and no action by any public authority, which may adversely affect the offer.
Jobs are advertised on Spotless’ careers page: spotless.com/careers