Powerflute agrees 90p a share takeover offer

Powerflute has received a £268m offer from an affiliate of US private equity firm Madison Dearbon Partners.

The offer from Nordic Packaging and Container Holdings (Bidco) is for 90p in cash per share, which is a premium of around 22% to the closing price of 73.75p on Wednesday.

Bidco was recently incorporated in Finland by investment funds advised by Madison Dearborn for the purpose of making this offer.

The Smurfit brothers who founded the company and own the biggest interest are expected to make around £65m from the deal, with both having already agreed to sell their 27.5% stake for 80p a share.

Bidco has already obtained an irrevocable undertaking from Henderson Global Investors and Alphagen Capital to accept the offer, which represents around 16.7%.

At 1550 BST, Powerflute shares were up 21% to 89.06p.