Packaging group Master Plastics will attract ‘significantly’ higher buyout offer
Suitors confirm better offer to be tabled
Packaging group Master Plastics will attract a higher buyout offer from its private-equity suitors after facing resistance from a prominent shareholder. On Friday, MCGF II Partnership and MCGF II Investments, which initially offered Master Plastics shareholders 200c per share, confirmed a higher offer of 220c would be tabled.
A notice to shareholders indicated that the higher offer was made after talks with significant minority shareholder Prudential Investment Managers, who had earlier registered disappointment with the 200c share offer. Prudential reckoned the offer did not fully reflect prospects for Master Plastics operations, particularly PlusNet-Geotex which manufactures agricultural nets for "undercover farming". The higher offer means the buyout scheme will probably be approved by shareholders, with the quantum of irrevocable undertakings now looking more compelling. Master Plastics disclosed that about 93.4-million shares, or 79.4% of the issued shares, had undertaken...
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