Engineering group Downer EDI is seeking seats on the board of takeover target Spotless after taking a majority stake in the facilities services company.
Downer announced on Tuesday that it now has 50.3 per cent of Spotless shares, after launching its hostile takeover bid in March.
Spotless, which has opposed the bid, said on Tuesday Downer wants seats on Spotless’s board in line with its controlling interest and it will now talk with Downer about “the composition of the board”.
“The board continues to believe that the Downer offer does not represent adequate value, but will engage with Downer in the best interests of the company and all shareholders,” Spotless chairman Garry Hounsell said in a statement to the ASX.
Downer is urging remaining shareholders of Spotless to accept its offer of $1.15 per share, with the deadline now automatically extended from Thursday to July 11 because of the increase to majority control.
Downer said it will not increase its offer, which values Spotless at $1.3 billion, as there are no superior rival proposals.
Shares in Spotless closed on Tuesday 0.5 per cent lower at $1.15, while Downer shares finished up 14 cents, or 2.3 per cent, at $6.34.