Apollo to buy majority of Italy's Reno de Medici, delist group

ROME (Reuters) - Funds managed by Apollo Global Management will acquire a majority stake in Italy’s Reno De Medici (RDM) and will then launch an offer for the remaining shares with the aim of delisting the cardboard manufacturer, the asset manager said on Monday.

The funds will initially buy some 67% of the group from its two top shareholders, Cascades and Canadian pension fund Caisse de dépot et placement du Québec, at 1.45 euros per share, the group added in a statement, for a total of 365 million euros ($433 million).

The price offers a 24% premium to the 90-day volume-weighted average share price, it said. Shares in RDM closed at 1.398 euros per share on Friday.

A mandatory offer for the remaining 33% of Reno De Medici will follow and the closing is expected in the third quarter of the year.

“RDM is well-positioned for continued growth as more companies replace plastics with sustainable packaging. We view RDM as a proven platform for inorganic growth,” said Marc Becker, Senior Partner and Co-Lead of Apollo Impact.

In a separate statement, Cascades President and Chief Executive Officer Mario Plourde said the group was selling its 57.6% stake in line with its strategy.

“The timing of this divestiture allows Cascades to monetise the value generated by RDM’s multi-year transformation initiatives, which have helped drive the significant increase in Reno de Medici’s share price over the past year,” he said.

Reporting by Giulia Segreti, editing by Louise Heavens