PE firm approaches Australia's PaperlinX
An unnamed private equity house has made a takeover bid for listed Australian paper manufacturer PaperlinX.
The company said it is evaluating the offer, which values the group at A$117 million ($117 million), according to The Sydney Morning Herald. The PE firm proposed to pay A$0.09 for each ordinary share and A$21.85 for the business' preference stock - causing its shares to fall 1.2%, to A$0.08.
Paperlinx generates annual revenues of around A$4.5 billion, but its market capitalization has fallen more than 75% in the past year. Its shares - which traded at about A$3-4 apiece before the 2008 financial crisis - closed at A$0.081 on Thursday, giving the firm a market cap of A$50 million.
Despite expecting to report a $26 million loss for the half year to December, UBS has been hired to find a suitable suitor for the firm and it has received separate bids for parts of the business.
"The board of PaperlinX has not yet formed a view with respect to any of the proposals and the company will provide an update in due course," said the company in a statement.
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