Valpak in advanced negotiations with one party

In August, the recycling and compliance specialists senior management proposed to buy-out the company, which is currently owned by its 4,141 members (see letsrecycle.com story) . But, a vote on the proposal had to be put on hold when further expressions of interest in the business were received (see letsrecycle.com story).

Now, the companys senior independent director Gerald Orbell has written to all Valpaks members to give them an update on progress to date.

The letter reads: We are now in an advanced state of negotiations with one interested party to finalise an exciting enhanced offer which we believe will deliver all the benefits of the previous MBO proposal, along with additional advantages and opportunities.

We hope to be in a position to announce the results of these discussions in the near future, and to give notice of a member vote on the proposals.

I will be in contact with you again to confirm the details of these matters when they are confirmed.

Approach

Mr Orbell stressed that, in assessing any offers, the non-conflicted directors had taken a very clear and thorough approach which has considered the potential impact on all Valpak stakeholders.

He said This assessment has been based on a range of relevant factors including, but by no means exclusively, financial valuation. Only those offers which appeared, in the NCDs judgement, to be in the longer term interests of all the stakeholders mentioned, and Valpak as a whole, are being further considered.

It remains unclear whether Valpaks senior management are involved in the latest proposal, with the companys chief executive Steve Gough telling letsrecycle.com that he could not reveal more than was contained in the statement.

But, he said he was hopeful of resolution in the next few months, commenting: I would hope that the whole process is closed off by Christmas.