21st Dec 2015 12:46
LONDON (Alliance News) - Paper and packaging company Powerflute Oyj said Monday that talks with Madison Dearborn Partners LLC have been terminated after evaluation by the independent members of its board of directors and consultation with some major shareholders.
Powerflute received a preliminary proposal from US private equity firm Madison Dearborn over a potential offer for the company earlier this month at 90.00 pence in cash and shares for the shares held by shareholders other than Dermot Smurfit and Bacchantes Ltd, who together hold around 36% of the company.
Madison Dearborn would the pay 79.00 pence per share for Smurfit and Bacchantes' shares, plus another 6.00p based on Powerflute hitting earnings targets.
The offer would have valued the company at around GBP261.5 million, including contingent consideration, compared to its current market capitalisation of GBP255.3 million.
Shares in Powerflute were down 1.5% at 89.85 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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