PACIFIC Equity Partners is selling a 9.5 per cent stake in Spotless for $229 million through investment bank UBS, according to sources.
The trade involves 104 million shares being sold at $2.21 each in a deal that was highly anticipated to happen today, as flagged by Dataroom last week.
Spotless released a statement today signalling that the escrow conditions had been satisfied for PEP to embark on another block trade, with stock able to be released from a lock up. Shares closed down 6c yesterday to $2.20.
PEP floated Spotless as a $2 billion company last year, with the private equity firm PEP and its management retaining a 49 per cent interest that was subject to escrow.
The terms of the escrow were that 25 per cent of its shares could be sold if the shares traded at a 20 per cent premium to the IPO price for 20 consecutive days after Spotless reported its 2014 financial results.
The same rules applied after the 2015 half year results, which were released last month.
Add your comment to this story
Santos deal may inflate its rivals
Santos’s buyout by the Abu Dhabi National Oil Company and The Carlyle Group is likely to add share price firepower to its rivals.
Recut deal with Platinum favours L1 Capital
Market experts say the move by L1 Capital to recast its merger deal with Platnum Asset Management was the difference between a deal getting across the line or being called off.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout