Kuopio, Finland 18 December 2015 -- Finnish company Powerflute, which includes cores producer Corenso, might soon have a new owner. Madison Dearborn Partners has made a preliminary offer for a takeover of the company.
Finnish company Powerflute announced it had received a preliminary proposal from US private equity firm Madison Dearborn Partners regarding a possible offer for its entire share capital. Powerflute said it would evaluate the proposal which it is considering to accept. However, there could be no certainty that any formal offer would be made, the company explained.
Madison Dearborn offered 90 pence (€1.24) for every Powerflute share held by shareholders other than Dermot F. Smurfit, who is Powerflute's Chairman, and Bacchantes Limited, the investment vehicle of Sir Michael Smurfit. For the shares of the latter, Madison Dearborn is willing to pay 79 pence (€1.09), plus a contingent value right of 6 pence. Dermot Smurfit and Bacchantes together hold a stake of 36.1% (106.973.221 shares) in Powerflute, according to the company. The total number of Powerflute shares reportedly amounts to 296.587.174.
About one year ago, the Powerflute Group had taken over Stora Enso's coreboard and cores business Corenso, which still trades under this name. Corenso operates three coreboard plants in Europe and the US as well as several cores plants in Europe, North America and China. According to Powerflute, Corenso has a capacity of 300,000 t of coreboard and 230,000 t of cores.
The Powerflute Group furthermore includes the packaging paper division which trades under the name of Powerflute. The company produces semi-chemical fluting and operates a paper mill in Kuopio, Finland with a capacity of 280,000 tpy.