Denise Richards Congratulates Charlie Sheen on Engagement

By Mike Fleeman

07/11/2007 at 08:00 AM EDT

Denise Richards is extending her best wishes to ex-husband Charlie Sheen on his engagement to girlfriend Brooke Mueller.

"I am genuinely happy for the two of them," Richards tells PEOPLE. "In fact, I sent them flowers to congratulate them both. I've spent time with her, and my girls really like her. That's all that matters to me."

Richards, 36, who filed for divorce from Sheen in 2005, has two daughters with him, Lola, 2, and Sam, 3.

A Sheen family friend confirmed on Tuesday that the actor, 41, is now engaged to Mueller, a 29-year-old real estate investor he has been dating for more than a year.

This spring, Richards split with Richie Sambora after a nearly one-year relationship, but she disputes a report that the breakup came about because Sambora, 48, wouldn't propose to her.

"That is 100 percent completely false," she says. "There were a lot of rumors about our relationship from day one and we broke up for many reasons. Richie is a great guy and an amazing father. I really wish him well."

She also rejects another report that she hired a matchmaker. "That whole story is false. I did not hire a matchmaker. But," she adds jokingly, "that's a great idea, maybe I should."

• Reporting by JULIE JORDAN