Carter Holt Harvey Limited has declared its off-market takeover bid for Australian packaging company Wadepack Limited free of all conditions after more than 90 per cent of Wadepack shareholders had accepted the company’s offer.
The company will now move quickly to involve Wadepack management, employees and customers in integration activities.
As outlined in the bidder’s statement, Wadepack shareholders who have accepted the offer will receive payment of A$2.70 for every ordinary fully-paid Wadepack share, comprising a A$2.60 per share cash payment and two A$0.05 dividends.
CHH Pulp, Paper & Packaging chief operating officer Rhys Jones said he was delighted the company was able to remove the conditions before the scheduled offerclose on February 18
“We’ve seen a very positive response from Wadepack shareholders and one that shows the value of our offer. I would now encourage all remaining Wadepack shareholders to act quickly and ensure payment for their shares within seven days of accepting,” he said.
Jones described the Wadepack acquisition as consistent with the strategy of investing in higher returning assets that deliver growth in Carter Holt Harvey’s core areas of wood products, pulp, paper and packaging, supported by forests.
“By bringing Wadepack into the Carter Holt Harvey fold we are creating a new leader in the Australian carton packaging market. Employees of both companies know they will be part of a bigger, stronger packaging company backed by world-class paper operations and better equipped to compete in the Australian market,” he said.
“We are pleased that Wadepack Managing Director Mr Nassibian will continue in his role,supporting a seamless transition for our customers and employees. Wadepack will operate as a stand-alone business within the CHH Pulp, Paper and Packaging group.”
“Our customers will continue to experience the same high levels of service they’ve come to expect from both companies, while also benefiting from the broader service offering and increased scale that flows from the backing of a significant Australasian packaging company,” Jones said.