EAPI majority owner in fresh full buyout bid

COPIL has made a fresh takeover offer to minority shareholders of EAPI. 

Photo credit: File Photo

Canadian Overseas Packaging Industries Limited (COPIL) has made a fresh takeover offer to minority shareholders of East African Packaging Industries Limited (EAPI), aiming to take its ownership in the company to 100 percent.

COPIL currently owns a 92.1 percent stake in EAPI, according to the latest available disclosures. The minority shareholders of the packaging firm were required to have taken action on the offer by April 17, 2024.

The acquirer said in the latest Kenya Gazette notice a letter of offer was dispatched by post mail to all of EAPI’s shareholders except 29 whose active addresses could not be traced.

“Notice is given that Canadian Overseas Packaging Industries Limited (the offeror) has made a takeover offer to acquire up to 100 percent of the issued ordinary shares in the share capital of EAPI,” reads the notice signed on behalf of the multinational by its secretary David Eramian.

“The offeror has prepared the requisite offer document setting out the terms and conditions of the offeror’s proposed takeover offer (the letter of offer).” Details of the offer, including the price per share, were not disclosed.

COPIL first expressed interest in taking over all issued shareholding of EAPI in 2003 in a deal that was advised by Kaplan and Stratton Advocates, a development that led to EAPI’s delisting from the Nairobi Securities Exchange.

At the time, a sizable chunk of the shareholders either declined the offer or failed to respond. The firm had 242 minority shareholders at the time of delisting. When the multinational made the initial offer, it raised its stake in EAPI to 92.1 percent, up from the 75 percent it had previously held.

COPIL would later, in December 2010, make a second offer to the minority shareholders, who by now stood at 132 and held 98,182 shares.

EAPI makes packaging materials for firms such as cement makers and horticultural producers, including flower growers. COPIL, the parent firm, has interests in the UK and also owns Caribbean Packaging Industries in Trinidad and Tobago, Jamaica Packaging Industries and Paper Processors Limited in Jamaica, as well as a distribution operation in Barbados dubbed Barbados Packaging Industries.

According to EAPI’s last annual report published for the period ended June 2002, the company had 7,680,000 ordinary shares in issue, Sh954 million in assets and 310 employees.

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