Former One51 shareholders may be bought out in new deal

Co-ops could get €75m cash windfall on investment in former One51 if bought out by other investors

Eoin Lowry

13 November 2019

Former One51 shareholders may be bought out in new deal

Larry Goodman through his investment firm, Vevan owns shares in IPL, formerly One51

With disappointing performance since the stock market launch of One51, Irish shareholders look set to be offered a deal to exit. The Irish Farmers Journal understands Irish shareholders in IPL Plastics, formerly One51 may be bought out under proposals to take the company private in the coming months. Irish shareholders, which include co-ops such as Dairygold, Glanbia, Kerry and Lakeland along with Larry Goodman, own around 45% of the Toronto-listed company.

With disappointing performance since the stock market launch of One51, Irish shareholders look set to be offered a deal to exit.

The Irish Farmers Journal understands Irish shareholders in IPL Plastics, formerly One51 may be bought out under proposals to take the company private in the coming months. Irish shareholders, which include co-ops such as Dairygold, Glanbia, Kerry and Lakeland along with Larry Goodman, own around 45% of the Toronto-listed company.

Performance in the plastics company, which floated less than 17 months ago, has been hit by higher resin costs (the main raw material for plastic) and bad weather over the past year.

It is now understood the Canadian investors, CDBQ (Caisse de Dupot et Placement du Quebec) and Fonds de Soildarite could offer to buy out the Irish investors

Shares have collapsed by a third since the flotation and its senior management team has changed, with Alan Walsh remaining as CEO.

It is now understood the Canadian investors, CDBQ (Caisse de Dupot et Placement du Quebec) and Fonds de Soildarite could offer to buy out the Irish investors.

However, the question for shareholders will be at what price. The shares held by Irish investors, who have been patiently waiting to exit, are valued today at more than €135m, with the co-ops alone holding some €75m shares. However selling at the current market price would see them lose money.

Exit strategy

While Irish shareholders were sold the IPO as an exit strategy, so far it has failed to offer shareholders liquidity.

They will be all too aware of the price Dermot Desmond shares were bought out at – believed to be €2.80 per One51 share. They will also remember Capvest’s offer of €2.50 per share.

But when the company floated at the lower end of the indicated range of the equivalent of €1.79 per One51 share it was hoped the future would allow an exit.

Since then shares have fallen below CAD$8 per share or below €1 per One51 share. In the last two weeks shares in the company have been trading up to CAD$9 or around €1.20.