A Singapore-Listed Maker Of Bulk Containers To Seek Strategic Alternatives
Goodpack specializes in environmentally friendly intermediate bulk containers (IBCs). Read more about why they are looking to bring in new investors. Read more about this here.
Singapore’s Goodpack taps Macquarie to seek options
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HONG KONG (Reuters) - Singapore container company Goodpack (GPAK.SI: Quote, Profile, Research, Stock Buzz) has hired Macquarie (MQG.AX: Quote, Profile, Research, Stock Buzz) to seek strategic alternatives — from a sale to a strategic buyer to bringing in new investors — sources familiar with the matter said on Friday.
Goodpack, a Singapore-listed maker of bulk containers for storing and transporting commodities, specializes in environmentally friendly intermediate bulk containers (IBCs) that could replace wooden boxes and metal drums widely used in bulk cargo today.
Shares of Goodpack rose 6.5 percent on Friday to S$1.79, an 8-day high. The company, which declined to comment, previously had a market capitalization of $572 million. Macquarie also declined to comment.
Sources said Goodpack hired Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) more than a year ago to sell the company, but a deal was never done because of the company’s high valuation.
Loscam Ltd, an Australian packaging company owned by private equity firm Affinity Equity Partners, could be interested in bidding for Goodpack, a source close to Goodpack said.
Another potential suitor could be Sydney-based Brambles (BXB.AX: Quote, Profile, Research, Stock Buzz) Ltd, the source said. It has a unit called CHEP, which is global leader in pallet and container pooling services.
Goodpack’s stock has fallen from its S$2.46 high last July, but its price to earnings ratio is still 17.6 times, compared with sector peers’ 11.9 times, according to Thomson Reuters data.
Valuations of many logistics companies, especially those based in Asia, have traded higher in the last few years, fuelled by the region’s economic growth and demand for the transportation of raw materials and goods.