US private equity firm Madison Dearborn is in advanced discussions with Irish-Canadian company IPL Plastics regarding a possible take private, the Sunday Independent understands.
A substantial premium on the current share price of CA$5.16 (€3.36) would be required to get any deal over the line.
The shares, which are listed on the Toronto Stock Exchange, are down more than 60pc from its listing price of CA$13.50 two years ago.
As previously reported in the Sunday Independent, IPL Plastics, formerly known as One51, had approaches from a number of private firms earlier this year. The other interested parties are believed to have been Capvest, which is led by Cavan man Seamus Fitzpatrick, and Apollo, a US private equity giant.
IPL is being represented by Bank of Montreal.
Sources said that talks with Madison Dearborn had intensified in recent weeks.
IPL Plastics was unavailable for comment while Madison Dearborn declined to comment.
Earlier this year, disgruntled Irish shareholders were told by the company that it was working on a 'liquidity solution'.
However, there is growing dissatisfaction among shareholders about the share price and scepticism about the likelihood of a liquidity event.
IPL/One51 has been involved in other approaches in the past, including a bid from Capvest in 2017. However, this ended without agreement
The Irish shareholders hold a 45pc stake in the firm, comprising several dairy co-ops, high net-worth individuals and around 2,000 private investors.
The other key shareholders are Canadian firms, public pension fund manager Caisse de dépôt et placement du Québec and Fonds de solidarité.
Last week, the Irish Times reported that solicitor and developer Noel Smyth claims he was denied the opportunity to speak at last week's AGM. He had attempted to press a button to register for a question without success.
He and a number of other shareholders want to see the company put up for sale within three months.
Smyth also claims to have the support of 30pc of the shareholders.
Irish shareholders include businessman Larry Goodman and the Kerry and Dairygold co-ops.
The results of voting from the AGM show that shareholders representing two-thirds of shares voted. Of these, shareholders representing up to 12.9pc of shares voted against the re-election of directors.
Sunday Indo Business