Robbins LLP: Acquisition of Polypore International, Inc. (PPO) by Asahi Kasei Corporation May Not Be in Shareholders’ Best Interests
Robbins LLP are investigating the proposed acquisition of Polypore International, Inc. (PPO) by Asahi Kasei Corporation. On February 23, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Asahi Kasei will acquire Polypore. Under the terms of the agreement, Polypore shareholders will receive $60.50 for each share of Polypore common stock.
Is the Proposed Acquisition Best for Polypore and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Polypore is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $60.50 merger consideration represents a premium of only 14.3% based on Polypore’s closing price on February 20, 2015. This premium is significantly below the average one day premium of nearly 24.1% for comparable transactions within the past five years. Further, the $60.50 merger consideration is significantly below the target price of $62.00 set by an analyst at Northland Securities Inc. on December 3, 2014.
On November 5, 2014, Polypore reported strong quarterly earnings results for its third quarter 2014. Sales rose nine percent over the comparable quarter in fiscal 2013, from $152.0 million to $165.5 million. As a result, Segment Operating Income, Adjusted Net Income, Adjusted EPS, and Income from Continuing Operations all saw an increase over the same period in 2013.
In commenting on these results, Polypore President and Chief Executive Officer Robert B. Toth remarked, “Polypore delivered solid performance in the third quarter, with each segment reporting growth. We continue to generate substantial cash from operations, our balance sheet and liquidity remain strong, and we have a solid foundation for growth across all of our businesses.”
In light of these facts, Robbins LLP is examining Polypore’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Polypore shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Polypore shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.