The Supreme Court of Victoria has given the green light for US giant Graphic Packaging to acquire all Colorpak shares, which is expected to be finalised on April 29.
The courts approval follows last week’s Scheme Meeting where Colorpak shareholders voted almost unanimously in favour of the deal with 99.87 per cent of the vote. This surpassed the 75 per cent of votes required for it to go ahead.
Colorpak chief executive Alex Commins
The Supreme Court’s approval was the final consideration of the proposal. Court orders are expected to be lodged with the Australian Securities and Investments Commission tomorrow and Colorpak shares will cease trade after this date.
Colorpak chairman Geoff Willis told Australian Printer the takeover will expand the company’s capabilities with the inclusion of paper production.
“Colorpak will be well supported and become a stronger company because its parent company, Graphic Packaging, is an international paper and packaging group,” he says. “It will have strong position working with paper mills to streamline supply and look for efficiencies and improvements in that integrated position.”
Willis says Alex Commins and Sid Troiani will remain in their roles as CEO and CFO respectively, and all other Colorpak staff will retain their current positions.
Colorpak and Graphic Packaging have been business partners for the past decade, as part of a global alliance of packaging outfits designed to enable standardised global output for global clients. The company’s founders, the Commins family currently own 32 per cent of issued shares.
Colorpak shareholders who register by April 22 will received a special dividend of 57 cents per share, expected to be paid out on April 29.
