(Editors Note: Quadrant is one of Warehoused Plastic Sales larger suppliers of polyolephins & mechanical plastics)
Quadrant Plastics declines possible public offer deal
Two applicants request Quadrant Plastics accept a pre-offer of due diligence for a possible public offering.
Quadrant Plastics has been asked by Cheyne Special Situations Fund L.P. and BC Partners to grant an exclusive pre-offer due diligence aimed to work towards a possible public offer for all outstanding Quadrant shares. Subject to satisfactory due diligence, a possible price range of CHF 300 to CHF 330 per share was mentioned. Such provisional valuation was said to be based upon both the assumption of pure organic growth and a satisfactory due diligence, but susceptible to be increased if opportunities for external growth were identified during the due diligence process. Further, due diligence was said to be a condition for a significant part of the financing of the transaction.
At its yesterday meeting, the Quadrant Plastics board of directors has resolved to decline the pre-offer due diligence request of the two applicants. The board is of the opinion that a highly leveraged going private would substantially jeopardize the further pursuit of the board’s growth strategy dedicated to Quadrant’s steady and sustainable increase in value. Further, the board is convinced that the publicly available information on Quadrant Plastics is sufficient for a possible public offer in the mentioned price range.
Quadrant Plastics will not further comment on this matter. However, should a binding offer be made, the board will examine the situation again.
Quadrant AG, Zurich, Switzerland, a global leader in high-performance polymer materials in the form of semi-finished and finished products with locations in 18 countries, generates annual sales of over CHF 800 million. The specialty engineering thermoplastics and composites manufactured and marketed by more than 2’400 employees worldwide are superior in performance to metals and other materials and are used in a growing number of applications, primarily in the capital goods industry. Together with leaders in a wide range of customer markets, Quadrant is continuously developing new areas of application. Thanks to its clear strategic orientation and focus, Quadrant has generated substantial added value for customers and shareholders since it was established in 1996 and is well prepared to continue expanding its market leadership in future.
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