Deals

Downer Makes A$1.26 Billion Takeover Offer for Spotless

  • Deal to be funded with A$1.01 billion capital raising
  • Takeover continues diversification from mining services
Lock
This article is for subscribers only.

Downer EDI Ltd., the Australian engineering and infrastructure management company, offered to buy Spotless Group Holdings Ltd. in a cash deal valuing the company at A$1.26 billion ($974 million) as it continues to diversify from resources following the mining-investment boom.

Downer offered A$1.15 per share for the Melbourne-based cleaning and catering services firm, according to a statement Tuesday, 59 percent more than Monday’s close. The company secured a 19.99 percent stake in Spotless late yesterday in a transaction arranged by UBS Group AG.