Vote approaches for sale of GL&V pulp and paper division
By Pulp & Paper Canada
By Pulp & Paper Canada
The Verreault family’s proposal to purchase the pulp and paper division of GLV Inc. has cleared one hurdle: the period during which GLV could solicit other proposals for the sale of the division has ended, and no better proposals were put…
The Verreault family’s proposal to purchase the pulp and paper division of GLV Inc. has cleared one hurdle: the period during which GLV could solicit other proposals for the sale of the division has ended, and no better proposals were put forth.
Next, shareholders will vote on Nov. 14 whether to accept the bid made by Richard Verreault and Laurent Verreault in September. The Verreault share purchase offer has been increased to $67 milion.
During the “Go-shop Period” which was initiated by GLV, National Bank Financial Inc., GLV’s financial advisor, contacted 25 third parties of which nine third parties entered into a confidentiality and standstill agreement with GLV, and received confidential information. The go-shop process did not result in a superior proposal for the pulp and paper division.
Following the go-shop process, the Verreault family accepted the request of the independent committee of the board of directors of GLV to increase the purchase price payable under the proposed sale transaction from $65 million to $67 million.
“Following discussions with institutional arm’s length investors, we are confident that the sale transaction will be supported by shareholders and will receive the required level of approval,” said Marc Courtois, chairman of the independent committee of the board.
The special meeting of shareholders of GLV to consider the proposed sale transaction and the change of name of the company from GLV Inc. to Ovivo Inc., will be held on November 14.
The Board of Directors of GLV had been considering the sale of the pulp and paper division since 2010 in order to redeploy the proceeds into its water treatment division, Ovivo.
GLV’s rationale is that the sale of the pulp and paper division will allow Ovivo to focus on its core competency of water treatment products and solutions, and will strengthen Ovivo’s balance sheet.
Upon closing of the transaction, Richard Verreault will step down from his current roles of president and chief executive officer and director of GLV and Laurent Verreault will continue to act as executive chairman of the board of directors. The Verreaults will remain shareholders of the corporation, exercising the same voting power.
The Verreaults are one of the founding families of GLV, and wish to ensure that the business continues and its head office remains in Quebec.