Bevpak (Nigeria) Limited, a packaging company which is one of the largest manufacturers of PET preforms in West Africa has been bought by Indorama Ventures Public Company Limited (IVL).
Through its indirect subsidiary, Indorama Netherlands B.V. (INBV), IVL signed a definitive Share Purchase Agreement on February 6th, 2019 with Church Street Trustees Limited as trustees of the SI Trust, BTI Overseas Limited and Capital Alliance Private Equity II Limited, for the acquisition of 100 percent of the share capital of Bevpak (Nigeria) Limited, IVL published on its website yesterday.
Meanwhile, the Ibadan-based Bevpak has production capacity to manufacture PET preforms of 18,000 Mts per annum, making it one of the largest manufacturers in the West African region.
PET is a kind of polyester material for fiber, injection moulded parts, as well as blow-moulded bottles and jars.
Announcing the acquisition to its shareholders on the Stock Exchange of Thailand, IVL stated that the value of the purchase, calculated in accordance with the regulations of the Capital Market Supervisory Board and the Stock Exchange of Thailand, as prescribed by the regulations of the Stock Exchange of Thailand “is less than 15 percent and the total size of all transactions in the past 6 months also does not exceed the 15 percent threshold limits as prescribed in the regulations.”
Also, the acquisition of Bevpak by Indorama Ventures is in line with the objective of the company considering it aims to strengthen its position as a market leader in the polyester value chain segment of intermediate petrochemicals in terms of scale, integration and differentiation as well as profitability and return on investment.
Bevpak which commenced production of PET preforms in Nigeria in 2008, has customers which include bottlers of the world’s leading brands of soft drinks and mineral water and major bottlers throughout Nigeria.
Other services it offers to its clients include; bottle design, market knowledge, new product development, technical assistance in the setting up and operation of PET blowing and filling lines.
Meanwhile, Indorama Ventures, founded by Indian businessman, Aloke Lohia, is not only one of the world’s leading producers in the intermediate petrochemicals industry but it is also a global manufacturer of wool yarns.
The Bangkok-based IVL with consolidated revenue of $8.4 billion as at the end of 2017 started its operations in 1994 and has presence in 31 countries. The company has about 97 manufacturing facilities with professional employee capacity of 16,000, as gathered from the company’s website.
As at the close of the Stock Exchange of Thailand yesterday, the share price of Indorama Ventures traded at a flat note as it stock price stood THB 48.25 per share, the same price it traded at the opening of the market.
Endurance Okafor
