Navigator has increased the takeover bid (TPO) price for Accrol’s UK shares from £0.38 to £0.39.
Navigator has increased the takeover bid (TPO) price for Accrol’s UK shares from £0.38 to £0.39.
In a statement, the paper company revealed that “on March 22, 2024, the Boards of Directors of Navigator Paper UK Limited, an indirect subsidiary 100% owned by The Navigator Company, and Accrol Group Holdings plc announced the terms of an offer recommended by Navigator UK for the cash acquisition of the entire issued and to be issued share capital of Accrol, a UK-based tissue paper processing company. Navigator today announced the terms of a recommended increase and final cash offer by Navigator UK for the entire issued and to be issued share capital of Accrol (the “Increased and Final Offer”). Under the terms of the Increased and Final Offer, Accrol Shareholders will be entitled to receive, for each Accrol Share, £0.39 in cash.”
Navigator explains that the Augmented Offer price values Accrol’s issued and to-be-issued equity capital at approximately £130.8 million (€152.7 million) and results in an Enterprise Value of approximately £188.2 million ( around 220 million euros).
The Increased Offer represents a premium of approximately 14.7% compared to £0.34, i.e. the closing price of Accrol shares on 21 March 2024, the last trading day immediately preceding the announcement of the Tender Offer.
It also represents a premium of 32.1%, compared to the average trading price of Accrol shares, weighted by volume in the six-month period up to the last trading day immediately preceding the announcement of the Offer, and also a premium of 26 .4%, compared to the volume-weighted average trading price of Accrol shares in the twelve-month period up to the last trading day immediately preceding the announcement of the Offer (March 21).
Navigator considers that “the financial terms of the Increased and Final Offer are fair”.
To this extent, Navigator confirms that the financial terms of the Increased and Final Offer are final and will not be increased, “reserving the right to review the Final Offer Price and/or otherwise improve the terms of the Final Offer if any an announcement on or after the date of this Announcement of a possible offer or of a firm intention to make an offer to Accrol by any third party, or if, on the other hand, the Takeover Panel gives its consent”, it adds.
Accrol’s Board of Directors confirmed that, from the date on which Navigator announced its firm intention to make the Offer (on March 22, 2024), to date, “no proposals have been received with regard to a offer to acquire all of the issued, and to be issued, ordinary share capital of Accrol by any third party”.
Accrol is a processor and supplier of toilet paper, kitchen rolls, facial tissues and wet wipes to major retail chains.
In the fiscal year ending April 30, 2023, Accrol recorded revenues of £242 million, an Adjusted EBITDA of £15.6 million and had a Net Debt of £26.8 million.
“The proposed acquisition of Accrol will reinforce Navigator’s positioning in the Western European tissue market. Navigator expects this acquisition to result in a consolidated turnover of around £500 million, with the UK market expected to contribute around 50% of Navigator’s total tissue turnover”, concludes the company.
