Outside interest puts Valpak buy-out on hold

Two weeks ago, the company wrote to its members proposing that they sacrifice their shares in the business in return for an initial cash consideration of 170 each, with a possible further 270 to follow (see letsrecycle.com story).

Members were set to vote on the proposal by proxy or in person at a meeting at Valpaks offices in Stratford-upon-Avon at 11am this morning.

But, in a further twist in the tale, unnamed third parties have now expressed an interest in acquiring the business meaning that a decision about the buy-out has been postponed until September 29. This givesthe company’s non-executive directors – who are impartial because they arenot bidding for thecompany -time to consider them.

The move comes after some suggested that the 697,000 being offered by Valpaks senior management for the business, with a potential 1,125 to follow, appearedsomewhat low.

In a statement, Valpak said: The Valpak Court Meeting and the Valpak Annual General Meeting (AGM) were adjourned today until 29 September at 3pm, at which time the matters relating to the proposed Management Buy Out will be considered.

The Independent Directors have received expressions of interest from third parties for the business, which will be reviewed in the interim.

Gerald Orbell, the spokesman for the companys independent directors, added: Any member who missed the opportunity to vote, now has until 27 September to do so.

Resources

Valpak said it could not not reveal who the expressions of interest had come from, although some have suggested it would need to befrom relatively large companies or consortia with significant resources.

It is not thought likely that one of the larger packaging producer compliance schemes would bid for the company, as this could potentially raise competition issues. Some have suggested that some of the larger waste companies without a compliance arm may be interested.

It is understood that Veolia, SITA UK and Biffaare not among those to have expressed an interest in the company, while a spokesman for Viridor said it had no comment.

Compliance schemes Wastepack and Compliance Link told letsrecycle.com that they were not involved, while WasteCare said it had no comment.