Morningstar - Spotless Group Holdings (SPO) Spotless Board Rejects Downerâ€™s AUD 1.15 Takeover Bid; Shares Fairly Valued

Report

Morningstar

Tim Mann

EUR 98.48 For Business Accounts Only

Spotless Board Rejects Downerâ€™s AUD 1.15 Takeover Bid; Shares Fairly Valued

We maintain our AUD 1.15 fair value estimate for narrow-moat-rated Spotless following the rejection of Downerâ€™s AUD 1.15 per share takeover offer. The current share price of AUD 1.09 is 5% below our fair value estimate. We await the release of the target statement on April 27 and final level of acceptances prior to the bidâ€™s expiry on May 15. We still believe Downer is the most logical acquirer of Spotless due to its 19.9% blocking stake and the cessation of discussions between Spotless and an u...

26/04/2017 13 EN

Underlying

Spotless Group Holdings

Spotless Group Holdings is engaged in the provision of outsourced facility services, laundry and linen services, technical and engineering services, maintenance and asset management services and refrigeration solutions to various industries in Australia and New Zealand. Co.'s operating segments comprised of: Facility Services, which provides multi-faceted facilities management, cleaning, and catering and food services to a range of industries across Australia and New Zealand; and Laundry Services, which provides linen and uniform laundry services to a range of customers across Australia and New Zealand.

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AU000000SPO4 Australia

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Tim Mann

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Spotless Board Rejects Downerâ€™s AUD 1.15 Takeover Bid; Shares Fairly Valued

SPOTLESS GROUP HOLDINGS sees a downgrade to Neutral on account of less fundamental stars

A director bought 200,000 shares at 1.129AUD and

Ceasing Coverage of Spotless

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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