Shareholders approve CPI acquisition

　　Bernard Cassell says shareholders gave overwhelming support for the resolutionCPI  mergers & acquisitions

　　CPI has moved a step closer to sealing the proposed $62m acquisition by Kiwi private equity group Maui Capital, with the paper giant’s shareholders overwhelmingly voting to support the buyout.

　　While still subject to court and Australian Securities and Investments Commission approvals it now looks likely the deal will go ahead to be finalised in may this year.

　　At the CPI shareholders meeting more than 99 per cent of votes were cast in favour of the resolution. The meeting results are consistent with the unanimous recommendation made by the CPI directors.

　　CPI has now applied to the Supreme Court of Victoria for approval of the scheme at a hearing scheduled for April 29. If the scheme proceeds CPI shareholders will receive 26.5 cents cash per share, which is expected to be paid between May 16 and May 18 this year.

　　Commenting on the approval Bernard Cassell says, “Shareholders gave overwhelming support for the resolution as they likely saw a good opportunity and good value at that price. If it all goes according to plan the acquisition will be fully effective by the middle of May when CPI will be delisted from the ASX.”

　　If the deal goes ahead the $500m turnover CPI will join Australian mid-size merchant Focus Paper and New Zealand’s biggest merchant BJ Ball in Maui’s PagePack portfolio. Together they will challenge the largest paper merchant in Australasia, the $700m PaperlinX business, for top spot.

　　PagePack, under the leadership of BJ Ball CEO Andrew Bull is likely to adopt an aggressive approach to market. Maui became the majority owner of BJ Ball early last year, with Ball then buying Focus in November.

　　Cassell says it is yet unclear whether he will stay with CPI if the acquisition is finalised. He says, “Right now the overall approval of the plan is more important than any one individual, but it is likely Maui will want to bring in their own people to run the CPI business. I might go have a holiday.”