Industrial services company Spotless Group has received an increased takeover bid from private equity group Pacific Equity Partners (PEP).

The revised bid includes an indicative price of $2.68 per Spotless share, up from the previous offer of $2.63 per share.

The new offer values Spotless at about $711 million, up from the previous offer’s $698 million.

Spotless said the first offer, made last month, was too low.

It said on Thursday it will now talk with PEP and its shareholders.

Those talks may or may not lead to a proposal that the Spotless board would support and ultimately recommend to its shareholders, the company said.

As part of the talks, Spotless will offer PEP a management presentation to ensure the private equity group has a full understanding of the directors’ view on each of Spotless businesses, it said.

The management presentation will also address certain due diligence matters relating to a change of control, including matters specifically raised by PEP, Spotless said.

Shares in Spotless gained 11 cents, or 4.8 per cent, to close at $2.40.