Goodpack drops the takeover bomb, confirms sealing the deal with KKR

Post takeover talks of 2 months.

Goodpack's shares are in for a joyride of new highs as it revealed the news that the 2-month takeover talks with big-time private equity firm KKR has come to a complete close with an offer price of $2.50.

According to OSK DMG, after a lengthy period of two months when takeover talks first surfaced, Goodpack last night announced a takeover by private equity firm KKR via a scheme of arrangement, at an offer price of SGD2.50. 

Earlier, the company had also held talks with other PE firms such as Blackstone and Carlyle, as well as logistics player Brambles.

Here's more from OSK DMG:

The deal with KKR values Goodpack at SGD1.4bn, representing 19.4x FY14E on our estimates. The offer price is at a 6.8% premium to the last traded price of SGD2.34 and a premium of 23-45% over the 1-month, 3-month, 6-month and 1year volume-weighted-average-price to 18 March 2014, just before the company announced that it is in talks with potential bidders.

The takeover is conditional upon, among other conditions, the approval of the Scheme by 75% of shareholders in a court meeting.

The latest buyout, if successful, will see founder David Lam walk away with a bounty of SGD450m for his 32% stake.

He and his management team will be able to continue to participate in Goodpack’s future growth via management equity arrangement with KKR.

Goodpack’s other major shareholders include Capital Group (5.5%), Universities Superannuation (5.1%) and Wong Ngit Liong (6.2%).