KKR's bid for Goodpack values mainboard-listed firm at $1.4 billion

SINGAPORE - A United States private equity firm has unveiled a takeover proposal for Singapore-listed Goodpack, ending more than two months of speculation over the packaging company.

KKR & Co is offering $2.50 per Goodpack share, valuing the company at $1.4 billion.

KKR, which does not yet own any shares in Goodpack, is undertaking a scheme of arrangement to try to take the company private, said Goodpack and KKR in a joint announcement on Tuesday.

Under this arrangement, KKR will get 100 per cent of the company if the scheme is given the go-ahead at a shareholders' meeting, to be held under the order of Singapore's High Court.

Two conditions need to be passed at this all-important meeting: a majority of shareholders at the meeting must give the go-ahead; and 75 per cent of shares by value at the meeting must also be cast in favour.

The first condition disregards the number of shares held - that is, a shareholder with one lot will be treated as equal to one with 1,000 lots, in deciding if the 50 per cent threshold is met.

The scheme must then be sanctioned by the High Court for it to go ahead.

KKR intends to hold Goodpack through IBC Capital, a company held by a fund that it advises. The plan is to delist Goodpack.

IBC Capital has received irrevocable undertakings from Goodpack executive chairman David Lam and a holding company controlled by him to vote in favour of the scheme. Mr Lam and his holding company hold 32 per cent of Goodpack.

KKR's offer is 23.2 per cent higher than the closing price on March 18, and 44.7 per cent higher than the average price for the 12 months before that date.

The next day, March 19, Goodpack announced that it has been approached by parties "in connection with a possible transaction, which may or may not lead to an offer for" its shares.

That was the first of a series of announcements about a possible deal. A frenzy was sparked in Goodpack shares, and the heightened interest and expectation drove the stock to an all-time high of $2.47 on May 19.

The stock last traded at $2.34 last Friday. Trading has been halted since pending this announcement.