Downer EDI is expected to send a formal $1.2 billion takeover offer to Spotless shareholders this week, after the Takeovers Panel announced that it would not halt the bid, according to the Australian Financial Review (AFR).
Spotless had asked the panel to delay the dispatch of Downer’s bidder’s statement for the $1.15 per share offer, arguing that the contractor had made “misleading and deceptive” assertions.
However, the panel concluded there was no reasonable prospect that it would make a declaration of unacceptable circumstances, and accordingly, would not conduct proceedings.
Following discussions with the panel and Australian Securities and Investments Commission (ASIC), Downer EDI has agreed to provide additional disclosure in a replacement bidder’s statement, in particular in relation to clarifying the operation of withdrawal rights for accepting Spotless shareholders while the bid is conditional.
Once Downer EDI’s takeover offer is dispatched, Spotless will have 15 days to produce its target’s statement.