Business Irish

Saturday 15 December 2018

IPL calls shareholder meeting ahead of IPO

Gretchen Friemann

IPL Plastics, the company formerly known as One51, will hold a shareholder vote on May 17 to approve a corporate restructure aimed at paving the way for a listing on the Toronto stock exchange in late June.

In preparation for the initial public offering, which is predicted to generate about €125m, investors must approve the establishment of a Canadian holding company.

The overhaul will be undertaken via a scheme of arrangement, which necessitates a court meeting followed by a shareholder vote at an emergency general meeting. Both events will run immediately after IPL's annual general meeting on May 17 in Dublin's Westbury Hotel.

Investor backing for the restructure also represents the last major hurdle before the IPO, which is due to start in late May or early June with the release of a prospectus and a formal roadshow to prospective shareholders.

The move to the boards will dilute the value of shareholders' existing stakes. Irish investors control 57pc of the company, which will reduce to 45pc after the IPO.

Canadian investors, Caisse de depot et placement de Quebec (CDPQ), and Fonds de Solidarite des Travailleurs du Québec, will see their stakes watered down from 43pc to about 34pc.

However, Irish holders of the stock who have stuck with the company during the past turbulent decade, have been offered the option of trading out ahead of the IPO via a CAD$50m (€31.8m) share buyback.

Most of these 2,000 investors are expected to pass on the share buyback option and follow their money in the IPO. Under the listing rules, these shareholders will be restricted from trading the stock on the Toronto exchange for six months after IPL's debut.

Irish Independent

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