logo
  

KKR Offers To Buy Singapore's Goodpack For S$1.40 Bln

Singapore-based packaging and logistic solutions provider Goodpack Ltd. said Tuesday that private equity giant Kohlberg Kravis Roberts & Co. L.P. (KKR) has proposed to acquire the company for S$1.40 billion, or $1.11 billion.

The proposed acquisition will be effected by way of a scheme of arrangement. Under the share scheme, all issued ordinary shares in Goodpack held by its shareholders as at a book closure date to be announced by the company will be transferred to IBC Capital Limited, a company held by a fund affiliated with and advised by KKR.

In consideration for the transfer, Goodpack shareholders will be entitled to receive S$2.50 per share. The offer price representing a 23.2 percent premium to Goodpack's closing stock price of $$2.03 per share on March 18, 2014, the day prior to the company's announcement of a possible transaction.

Based on Goodpack's outstanding issued share capital of 559.75 million shares, excluding treasury shares, the consideration price values Goodpack at about S$1.40 billion. The deal will be one of the biggest acquisitions by a private equity firm in Asia so far in 2014.

Founded in 1980 and listed on the Singapore Exchange Securities Trading Limited or SGX-ST in 2000, Goodpack is the world's largest provider of multi-modal, reusable metal box systems known as intermediate bulk containers or IBC that are primarily used by customers in the rubber, chemical, automotive and food processing sectors. Goodpack has a fleet of 3.2 million IBCs spread across over 5,000 delivery and collection points worldwide.

Ming Lu, Member of KKR and Head of KKR Southeast Asia, added, "Goodpack is a best-in-class provider of packaging and logistics solutions. We look forward to partnering with David and his management team in realizing Goodpack's potential and accelerating its growth by leveraging KKR's extensive relationships in new verticals and unique value creation resources, such as KKR Capstone, which works very closely with our portfolio companies to drive operational improvements."

The offer must be approved by Goodpack shareholders who jointly own at least 75 percent of the company. IBC Capital has received irrevocable undertakings from David Lam, Founder and Executive Chairman of Goodpack, and a company majority-owned and controlled by Lam, representing about 32 percent of Goodpack's share capital, to vote in favor of the share scheme.

Upon completion of the share scheme, Goodpack will become a wholly-owned subsidiary of IBC Capital, and will be delisted from the Singapore stock exchange.

Goodpack closed Friday's trading at S$2.34 on a volume of 2.43 million shares. KKR closed Friday's trading at $23.04, down $0.34 or 1.45 percent on a volume of 1.71 million shares.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
A multi-state listeria outbreak that has killed one and sickened at least 23 others has been linked to Florida -based Big Olaf Creamery brand ice cream, according to the Centers for Disease Control and Prevention or CDC. The outbreak strain has been reported from 10 states, resulting in 22 hospitalizations. One death has been reported from Illinois. Natreve, a premium wellness company, is recalling certain Vegan Protein Powder due to undeclared milk, a known allergen, the U.S. Food and Drug Administration said. The recall involves specific batches of its Vegan Protein Powder French Vanilla Wafer Sundae flavor. The impacted products are stored in 13 oz (10 servings) and 1.47lb (18 servings) white tubs. The Federal Communications Commission or FCC has granted SpaceX Services, Inc. authorization to use its Starlink satellite internet system on vehicles in motion. SpaceX, owned by Elon Musk, is allowed to operate consumer and enterprise Ku-band Earth Stations in Motion or ESIM using frequencies allocated to the fixed satellite service. The approval would help the company to expand its services to
Follow RTT