Private-equity fund Capvest has lined up bank funding for its €280 million bid for One51, the unquoted company now focused on plastics and environmental services.
Capvest is understood to have first approached One51 last February and its takeover approach, valued at €1.80 per share, follows discussions with the board.
The offer has already been discussed with major shareholders, suggesting the deal could progress quickly if enough of them decide to sell.
One51 announced last week that it had received a takeover approach from an unnamed party at €1.80 a share.
It is believed initial contacts between Capvest and the company board, which started early this year, recently involved discussions of a possible bid at the €1.70 to €1.80 a share level.
The approach now indicates a firm intention by Capvest to proceed.
It has offered One51 shareholders the option of retaining an equity stake, though is likely to want to own more than half the shares itself for the bid to proceed.
Co-op shareholders
One51 emerged from the break-up of IAWS in 2005 and retains many of the co-op shareholders from that time.
Its shares are quoted on a grey market and investors will now have to decide whether to accept the Capvest offer, or to move towards a stock-market flotation.
The biggest shareholders are Nick Furlong’s Pageant Holdings, with 8 per cent; Kerry Co-Op, with 4.7 per cent, Larry Goodman’s investment vehicle Vevan, which has just under 4.5 per cent; and Northern Ireland co-op Fane Valley, with 3.45 per cent.
Having run into trouble with high debts and big investment writedowns after the economic crash, One51 has refocused in recent years under chief executive Alan Walsh, selling down many of its investments and focusing its strategy on plastics and environmental services.
Last year it reporting revenue of €276.5 million and ebidta of €21.9 million.
It recently expanded its plastics division, gaining control of Canadian firm IPL in a €201 million deal.
Capvest was co-founded in 1999 by Cavan man Séamus Fitzpatrick and is a major European private-equity fund.
Valeo F
oods It recently took full control of Valeo F
oods, which owns the Jacob’s and Batchelors brands, and also owns the Mater Private Hospital.
One51 shares traded last year between 60 cent and €1.12 but have been on the up in recent months on the back of a strong trading performance.
Yesterday there were two transactions at €1.70 and €1.75.
In a recent shareholder presentation, the group said “appropriate liquidity options” were under consideration.
If Capvest gains control, its previous record suggests it would work with the existing management team.
