Independent Directors Secure Bid For Taylors

18 September 2009

Independent Directors Secure Higher Bid For Taylors Group Limited

The Committee of Independent Directors of Taylors Group Limited (``Taylors’’), Trevor Kerr (chair) and the Rt Hon Paul East QC, have persuaded Spotless Services (NZ) Limited ("Spotless") to increase their bid for the shares in Taylors which Spotless does not already own.

On 25 August 2009 Spotless announced its intention to make an offer for those shares of Taylors it does not already own, at $2.08 per share.

The formal offer, which will be mailed to Taylors' shareholders next week, has been increased to $2.25 per share, an increase of 17 cents per share.

The independent directors are recommending shareholders accept the revised offer.

Mr Kerr says the $2.25 per share is approximately 12.5% above the closing share price the day before the intention to make an offer was announced, and approximately 31% above the average share price of the preceding 30 trading days, calculated on a volume weighted average share price basis.

``Spotless already owns 66.01% of the shares of Taylors and controls the company. There is most unlikely to be another offer, and if the current bid does not succeed, it could be a long time before the share price returns to the level being offered. Taylors is a mature company, with limited growth potential.’’

The target company statement, independent adviser's report from Grant Samuel & Associates Limited, together with a letter from the independent directors setting out the detailed reasons why they recommend acceptance of the offer, will be included in an information package being sent to shareholders next week. Mr Kerr recommends shareholders study this material before making a decision.

Mr Kerr does not hold shares in Taylors. Mr East says he will accept the revised offer in respect of the shares he owns in Taylors.

In addition, Taylors will pay a 7 cents per share dividend on or about 2 October 2009 to those shareholders on the share register as at the record date for the dividend (being 18 September 2009).

ENDS

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