Wellington, Sept 18 NZPA - Australian-listed Spotless Group has lifted its bid for the third of shares it does not already own in laundry and related services company Taylors Group.
Taylors said today Spotless would now be offering $2.25 per share, after last month announcing a price of $2.08. The shares closed at $2.12 yesterday.
Taylors committee of independent directors -- Trevor Kerr and Paul East -- had persuaded Spotless to increase its bid.
The independent directors were recommending shareholders accept the revised offer.
The $2.25 per share was about 12.5 percent above the closing share price the day before the intention to make an offer was announced, Mr Kerr said.
It was also about 31 percent above the average share price of the preceding 30 trading days, calculated on a volume weighted average share price basis.
"Spotless already owns 66.01 percent of the shares of Taylors and controls the company," Mr Kerr said.
"There is most unlikely to be another offer, and if the current bid does not succeed, it could be a long time before the share price returns to the level being offered. Taylors is a mature company, with limited growth potential."
A target company statement, independent adviser's report from Grant Samuel & Associates, and a letter from the independent directors setting out the detailed reasons why they recommend acceptance of the offer, will be included in an information pack being sent to shareholders next week.
Mr Kerr did not hold shares in Taylors, while Mr East said he would accept the revised offer for the shares he owns in Taylors.
In addition, Taylors will pay a 7c per share dividend on or about October 2.
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