SIG
Takeover bid from Elopak turned down / Due diligence / Invitation for offers widened
SIG Holding (Neuhausen / Switzerland; www.sig.biz) claims that its shares are worth more than CHF 350 (EUR 220), rejecting what is possibly the maximum offer from the Norwegian Ferd Group and CVC Capital Partners (www.cvc.com) – see Plasteurope.com Web of 02.10.2006. On 25 October 2006, the Swiss management presented the shareholders with information which, it claims, proves that the takeover offer from the parent company of the third-largest supplier of beverage and food cartons, Elopak (Spikkestad / Norway; www.elopak.com), substantially undervalues SIG. The company backed its defence of the bid with the publication of a detailed business plan up to 2009 and key data for the value drivers of the future up to 2014.
"Our strong performance this year in combination with our business plan, our excellent growth potential and our attractive business model reflect the true strategic value of SIG," said Lambert Leisewitz, chairman of the board of directors. The industry number two in aseptic cartons has revised its forecast for 2006 upward and now expects profits of EUR 62m, an increase of 32% on the previous year. The management has successfully realigned the company and positioned it as an efficient and focused platform to exploit global growth opportunities on the market for beverage and food packaging, Leisewitz added.
The bidding process initiated by the board of management is now under way. SIG has already received a number of preliminary indications of interest from industrial enterprises and financial investors, Leisewitz said. Selected candidates had been invited to undertake due diligence, which should begin "within a few days". The Swiss company expects the public offer from Ferd to be submitted on 6 November 2006. Counter-bids could then be submitted up until 12 December, said the packaging manufacturer.
In parallel with the significant strengthening of the carton business, the company says it has successfully repositioned the plastic bottle business and aligned it to the value-added bottling segment. SIG is concentrating on geographic expansion in markets characterised by heavy growth and is moving into new market segments. It is also focusing on the development of leading technologies aimed at driving growth even further forward. The thrust by SIG Combibloc (Linnich / Germany; www.combibloc.com) into growth regions such as the Middle East, South-East Asia and China has proved successful and has been delivering high double-digit growth rates in recent years.
SIG also regards the retort food segment (food such as fruit and vegetables) as an additional value driver of the future. The technology for coating plastic bottles with the plasma barrier "Plasmax" should deliver similar margins to the carton business in future, thanks to the business model based on a licence fee paid per coated bottle.
e-Service:
News release from SIG Holding on the value of the company share as PDF document (134 KB)
"Our strong performance this year in combination with our business plan, our excellent growth potential and our attractive business model reflect the true strategic value of SIG," said Lambert Leisewitz, chairman of the board of directors. The industry number two in aseptic cartons has revised its forecast for 2006 upward and now expects profits of EUR 62m, an increase of 32% on the previous year. The management has successfully realigned the company and positioned it as an efficient and focused platform to exploit global growth opportunities on the market for beverage and food packaging, Leisewitz added.
The bidding process initiated by the board of management is now under way. SIG has already received a number of preliminary indications of interest from industrial enterprises and financial investors, Leisewitz said. Selected candidates had been invited to undertake due diligence, which should begin "within a few days". The Swiss company expects the public offer from Ferd to be submitted on 6 November 2006. Counter-bids could then be submitted up until 12 December, said the packaging manufacturer.
In parallel with the significant strengthening of the carton business, the company says it has successfully repositioned the plastic bottle business and aligned it to the value-added bottling segment. SIG is concentrating on geographic expansion in markets characterised by heavy growth and is moving into new market segments. It is also focusing on the development of leading technologies aimed at driving growth even further forward. The thrust by SIG Combibloc (Linnich / Germany; www.combibloc.com) into growth regions such as the Middle East, South-East Asia and China has proved successful and has been delivering high double-digit growth rates in recent years.
SIG also regards the retort food segment (food such as fruit and vegetables) as an additional value driver of the future. The technology for coating plastic bottles with the plasma barrier "Plasmax" should deliver similar margins to the carton business in future, thanks to the business model based on a licence fee paid per coated bottle.
e-Service:
News release from SIG Holding on the value of the company share as PDF document (134 KB)
31.10.2006 Plasteurope.com [206668]
Published on 31.10.2006
German version of this article...