Downer EDI is reported to be in the market for shares in Spotless Group ahead of launching a $1.3 billion bid for the services contractor.
It is offering $1.15 a share in cash, a significant premium to the target's last traded share price of 72.5c.
Spotless provides services including cleaning, waste management, catering and maintenance for clients such as sporting stadiums, hospitals and aged care homes.
Grant Fenn, Downer's chief executive officer, said the acquisition of Spotless was an investment in the company's strategy to expand its capabilities and strengthen its position as a leading service provider.
The trade represented a 14.9 per cent stake in Spotless which, when added to Downer's existing 5 per cent economic interest, takes its stake to 19.9 per cent.
"These include a blue-chip customer base and a strong portfolio of long-term government, health, defence, and public-private partnership (PPP) contracts, as well as operating the largest commercial laundry business in Australian and New Zealand", Hounsell said.
The offer will need to achieve at least 90 per cent shareholder support and regulatory approval to proceed.
- Jones deja manilla en manos a Colombia
- In Syria, deal struck to allow rebels to leave city of Homs
- Gladstone Capital Corporation (GLAD) Ex-Dividend Date Scheduled for March 20, 2017
- Los colombianos comenzaron a rodar este lunes en la Vuelta a Cataluña
- United Kingdom foreign secretary discusses drought on Somalia trip
- Russian opposition leader Alexei Navalny splashed with green liquid in Siberia
- EC for life ban on convicts
- Price Target Analysis of General Motors Company (GM)
- China to fund weapon building in Pakistan
- Olivier Giroud wants Arsene Wenger to stay at Arsenal