One51 IPO likely as shareholders to back reorganisation proposals

Plastic container maker One51’s Canadian shareholders will back the proposed reorganisation of the Irish company that will pave the way for a likely stock market launch.

One51 said on Friday that it will proceed with plans for an initial public offering (IPO) and it confirmed that discussions with CapVest about a possible deal have ended without agreement.

In an announcement the company said it will convene an extraordinary general meeting (egm) early next month to discuss proceeding with an IPO and listing next year.

Canadian pension fund CDPQ, owns almost 26.5 per cent of One51 and, with another investor, FSTQ, 33 per cent of the Irish company’s North American business, IPL.

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According to a notice that One51 issued yesterday, CDPQ has irrevocably committed to vote in favour of reorganisation proposals that the Irish company will put to shareholders at next month’s meeting.

This involves CDPQ and FSTQ swapping their stake in IPL for shares in One51, which would bring their combined total holding in the Irish manufacturer to around 41 per cent.

Friday’s notice points out that IPL’s current shareholding structure inhibits One51 from seeking a stock market listing, so the proposed reorganisation is needed to allow this to happen.

Clients

Its shares are publicly traded but are not listed on any stock market. They were priced at €2.20 on Friday, valuing the company at €345 million.

One51 makes wheelie bins and plastic containers used in the food, manufacturing and healthcare industries in Europe, America and China. It numbers Kraft and paint maker Dulux among its clients.

The company began as an investment business spun out of food and agriculture supplies group IAWS. Its initial assets included a 26 per cent stake in infrastructure company NTR and Irish Pride Bakers.

Chief executive Alan Walsh has remodelled One51 by focusing on developing its plastics manufacturing and selling businesses that were not relevant to this activity.

A number of co-ops, including Kerry, Dairygold and Lakeland hold between 27 per cent and 28 per cent of the company. Beef baron, Larry Goodman’s Vevan, owns a further 4.5 per cent. Dermot Desmond sold his stake to CDPQ earlier this year.

The company is likely to take a dual listing on the Canadian and Irish stock exchanges. It named Dublin firms Davy and Goodbody as joint advisers and brokers.

As part of the move, the company also intends to rebrand as IPL Plastics plc, it said.

The group announced in late August that it had decided to explore a possible flotation and listing.

It also confirmed that talks with UK private equity firm Capvest, which is led by Cavan man Séamus Fitzpatrick, in relation to a €2.50 in cash per One51 share offer, have now terminated without agreement.

Capvest courted One51 in mid 2015, but that also ended without the pair doing a deal.