KKR's Goodpack acquisition terms 'fair'

THE financial terms of private equity firm KKR's proposed acquisition of local packaging logistics firm Goodpack are "fair and reasonable", the independent financial adviser (IFA), Provenance Capital, said yesterday.

"The scheme of arrangement is not prejudicial to the interests of shareholders," it added. Goodpack's independent directors have accordingly recommended shareholders to vote in favour of the scheme when they convene on Aug 14 to give their approval for the acquisition.

According to the terms of the acquisition, shares in Goodpack will be transferred to IBC Capital Limited, a company held by a fund affiliated with and advised by KKR. Goodpack's shareholders will then be entitled to receive S$2.50 per share in cash - representing a 23.3 per cent premium to the counter's closing price on March 18, being the day before the company first announced a possible transaction. The consideration values the company at about S$1.4 billion.