The possibility that Punch International would sell up its almost 66% stake in Xeikon was first mooted earlier in 2013, and that possibility became a strong likelihood today, with independent private equity firm Bencis Capital Partners Belgium NV being revealed as having reached conditional agreement on the purchase of the Punch holding.
Bencis targets medium sized companies in the Benelux countries, across a broad range of industry sectors such as industry and manufacturing, food and beverages, leisure and media, wholesale and retail and services. A price per share of EUR 5.85 has been agreed for the transaction (a total consideration of €110.3 million), which if it goes through will also see Bencis obliged to make a mandatory offer for all remaining Xeikon shares.
Certain conditions need to be met first, reportedly around Xeikon’s interim results, Bencis raising capital and the approval of competition authorities. It is expected to complete no later than 17 September.
A statement from Xeikon this morning said: ‘The conditions precedent as set out in the agreement between Punch and Bencis, inter alia, relate to the completion of certain agreements between Xeikon and Punch -the object of which is to end existing ties between Xeikon and Punch. The Boards will give due and careful consideration to the aforementioned matter and discuss this with Bencis and Punch.’
