Tikehau Capital is facing competition from industry buyers as it works to take control of Italian bottle-cap manufacturer Tapí Group, with two strategic bidders having submitted offers and a third preparing a proposal, according to Private Equity Wire. The report attributes the information to Bloomberg, which cited unnamed people familiar with the situation.
Strategic bidders submit offers as restructuring continues
Guala Closures and Corticeira Amorim have made offers for Tapí, while Cobepa, the owner of packaging group Crealis, is working on a potential bid, according to Private Equity Wire. The competing approaches are emerging while Tapí continues negotiations with its lenders and Tikehau over a restructuring of the company’s finances.
Tapí’s board, working with its lenders, will ultimately have to determine whether to pursue one of the strategic offers or proceed with Tikehau’s restructuring proposal, according to the same report. None of the rival proposals would enable Tapí to repay its creditors in full, according to the people familiar with the matter cited in the report.
Ownership and debt linked to Stirling Square acquisition structure
Tapí is currently owned by private equity firm Stirling Square Capital Partners, which acquired Tapí using a leveraged bidding vehicle, according to Private Equity Wire. The borrowings were originally raised by the acquisition vehicle used by Stirling Square to purchase the company.
The company is navigating a restructuring process in which it is described as being caught between a creditor-led solution backed by Tikehau and potential acquisitions by strategic industry participants, according to the report.
Tikehau restructuring plan: new capital and debt conversion
Tikehau had been working toward a restructuring that would provide Tapí with additional funding while giving the private lender control of the business, according to Private Equity Wire. Discussions had advanced in that direction before approaches from strategic buyers emerged.
Under Tikehau’s proposal, the firm is seeking to inject fresh capital into Tapí while seeking to convert at least part of the group’s almost €150 million of bank debt into equity-like instruments, according to the report. Tikehau has increased its exposure to Tapí by acquiring interests in the company’s liabilities, but the proposed restructuring still requires the support of the creditor banks before it can be implemented on a consensual basis.
Comments and process status
Guala Closures declined to comment, while a Tapí spokesperson declined to discuss the details of the process, according to the report. Amorim, Cobepa and Tikehau did not respond to requests for comment, the report said.
Widely known context: In European restructurings, creditor-bank support is often required for a consensual implementation of a debt-to-equity style plan, and strategic buyers may submit offers that compete with lender-led proposals.
