CapVest's One51 bid fails to win Canadian backing
A takeover approach by CapVest, the private-equity firm headed by Cavan businessman Seamus Fitzpatrick, for plastics company One51 fell down over a failure to reach agreement with the company's Canadian shareholders.
It understood that some progress had been made on talks and while a price had not been settled upon, the main issue was how the deal would be structured.
The Canadians - CDPQ, an institutional investor which manages funds for the Canadian public sector, and FSTQ, a Canadian government agency which supports investment in Quebec - are long-term holders in the company and would have remained as minority investors.
CapVest typically runs its investments independently of shareholders and it was expected that Fitzpatrick would have given the Canadians assurances in exchange for their backing of the deal and stepping back from operational matters.
One51 is a major shareholder in a number of Canadian business, the largest of which is IPL, and the Canadian investors may wish to continue to be influential in relation to this business, sources said. One51 said on Friday that it will push ahead with a restructuring to pave the way for an IPO.
Sunday Indo Business