Goodpack Ltd. climbed the most in almost two months after KKR & Co., the buyout firm run by George Roberts and Henry Kravis, offered S$1.4 billion ($1.1 billion) to buy the provider of bulk containers.
Goodpack shares rose 4.3 percent to S$2.44 at the close in Singapore, the biggest gain since April 3. KKR said yesterday it will pay S$2.50 a share in cash, a 6.8 percent premium to the last traded price of S$2.34 on May 23.
The buyout firm is turning its interest to Singapore after acquiring disk-drive parts maker MMI Holdings Ltd. in the city-state seven years ago for about S$1 billion. The offer has the support of Chairman David Lam, who owns about 32 percent of the Goodpack, according to the statement to the Singapore exchange.
KKR’s offer “will see founder David Lam walk away with a bounty of S$450m for his 32 percent stake,” Goh Han Peng, an analyst at DMG & Partners Securities Pte, said in a report today. “He and his management team will be able to continue to participate in Goodpack’s future growth via management equity arrangement with KKR.”
Goodpack shares have increased 20 percent since the start of the year until the formal offer from KKR, compared with the 3.5 percent advance in the Straits Times Index. The offer is 23 percent higher than the stock’s close on March 18, the day before the company said it was approached by unidentified parties.
Goodpack said in a May 20 statement to the exchange it’s in discussions with the private-equity firm, a day after the stock rose to a record of S$2.47. The Singapore company said it has the world’s largest fleet of intermediate bulk containers.
The acquisition will give KKR an investment “in a company with an exceptional platform,” according to the statement yesterday.
KKR plans to delist Goodpack after the acquisition, according to the statement yesterday. The buyout firm said in 2012 it was planning to expand its business lending to Asian companies amid a shortage of funding in the region.
In the Asia-Pacific region, KKR’s A$3.05 billion ($2.8 billion) proposal to buy Melbourne-based Treasury Wine Estates Ltd., whose labels include Stags’ Leap, Wolf Blass and Beringer, was rejected as too low earlier this month.
The private-equity firm has about 23 investments across the Asia-Pacific after buying an 80 percent stake in Panasonic Healthcare Co. in March.
KKR is represented by Morgan Stanley, Credit Suisse Group AG and Goldman Sachs Group Inc.