This update is issued ahead of an EGM to be held later today to obtain shareholder approval for the company restructuring, which would allow a possible stock market listing in 2018. It is hoped that this event will clear the way for this process, which, as the board says, has “objective of maximising shareholder value and delivering a liquidity event for shareholders”.
North America
On performance, the group said its North American business, which accounts for around 75% of total revenues, has performed strongly. This business includes IPL and Macro, which it acquired in June this year. It said the integration of Macro is going to plan.
However, One51 said performance in its Irish, UK and Chinese businesses has been mixed. It noted that the UK business has performed better than last year on a constant currency basis.
Its Irish business has been hit by reduced demand from the group’s largest customer. The group also said in the statement that the second-half results have been negatively affected by the decline in the value of the Canadian and US dollars. Significant increases in resin and transport costs following recent hurricanes in the US also impacted results.
Takeover approach
Last month, a takeover approach by CapVest for the plastics company broke down over a failure to reach agreement with the company’s Canadian shareholders. The main stumbling block is understood to have been around how the deal would have been structured.
The co-ops, including Glanbia, Kerry Group, Lakeland and Dairygold, collectively own some 43m shares or 27% of One51 today. Based on where the shares have been trading recently (€2.00), this values the entire company at around €310m and the co-ops share at some €85m.