Photo: Ryan Remiorz, The canadian Press
The Caisse intends to “continue to support the development of the society in Quebec and abroad. Under the condition that it meets a minimum threshold of shareholding, the Fund will have governance rights that apply to any significant change which may affect certain business activities of the company in Quebec.”
Plastic IPL changes a new both hands. With the backing of the Caisse de dépôt, the manufacturer of molded plastic products happen within a an investment firm in Chicago.
A rumor of a possible transaction aimed to close the equity capital of IPL had been noised abroad last may in a newspaper in irish. The scenario is confirmed.
Plastic IPL announced that it had entered into an arrangement agreement to be acquired by an entity controlled by the fund CDM ” managed by Madison Dearborn Partners, a private equity company based in Chicago.
$ 10 per share
The buyer offers $ 10 per share in cash, a purchase price containing a premium of 49 % over the closing price of Wednesday, 69 % on the weighted-average trading volume over 20 days for the period ending July 28, 2020 and a premium of 153 % over the closing price on may 15, the last Trading day prior to the media announcement of a potential acquisition, one can read in the press release. This award evaluates a company to 981 million.
IPL has, however, retained the right to solicit a superior proposal during a specified time period. In response, the action of IPL has ended on Wednesday, to 9.97 $, up 3.27, or $ 48.8 % compared to the previous day.
This arrangement agreement has been concluded on the unanimous recommendation of the board of directors and the independent committee of the board. It receives the backing of the Caisse de dépôt, the largest shareholder of the company with a participation of about 27 %, implying a working capital of most of its shares.
At the end of the transaction, the fund CDM will be the controlling shareholder of IPL and a wholly owned subsidiary of the Fund will hold an indirect interest in a minority of approximately 24.9 %, ” says-t-on. The remaining shares of the Fund will be sold to the buyer for the purchase price. The solidarity Fund QFL, with a participation of 8.7 %, also signed the voting agreement and support, adds IPL.
The Fund intends to ” continue to support the development of the society in Quebec and abroad. Under the condition that it meets a minimum threshold of shareholding, the Fund will have governance rights that apply to any significant change which may affect certain business activities of the company in Quebec.” IPL has approximately 2000 employees and has offices in Montreal and Dublin.
The company notes that since its initial public offering in June 2018, at a price of $ 13.50 to$, its shares have fallen, or even ” are traded at a discount relative to those of major comparable companies […] given the poor performance of its shares and the limited liquidity of its securities, the company will have more difficulty in financing and to seize growth opportunities “.
More than once
IPL has changed hands more than once during the decade. Around 2010, the solidarity Fund and Novacap took the relay of the shareholders / members of the founding family to acquire control in the framework of a project of transfer of the undertaking.
It is placed under the control of the majority of the irish One51 in 2015, which sold its shares in 2017, allowing the Fund to become the main shareholder, according to the press review.
To see the video
