Downer acquired Spotless, first as majority owner then moved to full ownership. Downer for whatever reason wants to get rid of the laundries. This is from Spotless target statement when Downer moved to acquire what it did not yet own under the 90% rule. . .
6.4 Spotless business and assets in the event that the Offer is not successful On 21 July 2020 Downer, as the majority owner of Spotless, announced the following changes affecting the business and assets of Spotless. As set out in Section 6.2 of the Bidder’s Statement, Downer has indicated that it would intend to pursue the following changes whether or not Spotless becomes a wholly owned subsidiary pursuant to the Offer. The changes below are extracted from the Bidder’s Statement. I. “Disposal of Laundry businesses The exit of Spotless' Laundries business remains a key objective. The Laundries business includes the rental, cleaning, collection, delivery and stock management of linen, uniforms and specialised workwear, with 13 commercial laundries servicing 3,500 clients across Australia and New Zealand and processing over 117,000 tonnes of laundry every year. The Laundries business sale process has been paused and will resume when investment market conditions improve.”
I don't think I am guilty of misreading the news.
DOW Price at posting:
$4.89 Sentiment: Hold Disclosure: Held
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