Masthead contacts Vertex shareholders

The bitter takeover of plastics company Vertex formally kicked off yesterday with disgruntled stakeholder Masthead mailing offer documents to shareholders.

Masthead is a private investment company owned by the Stewart family of Christchurch, who previously owned listed PDL Holdings.

Masthead has offered $1.90 a share for 100 per cent of Vertex, valuing the company at about $61 million.

The offer is conditional on Masthead gaining a 90 per cent stake. It already has 19.9 per cent.

Masthead director Mark Stewart unveiled plans for the bid this month after expressing dissatisfaction with the performance of the Vertex board since the company listed in 2002.

The offer documents confirm that Masthead will consider merging its Alto Plastics business with Vertex if it takes full control.

A full takeover would see Vertex delisted less than three years after it floated at $2.05.

Two months after listing, the company downgraded profit forecasts to 15 per cent below the prospectus forecast.

The Market Surveillance Panel investigated the forecasts and said the profit downgrade should have occurred earlier.

State of play

* The plastic packaging company listed in July 2002 at $2.05.

* It makes products such as meat trays and kiwifruit packaging.

* The bidder: Masthead Equities, an investment company for the Stewart family of Christchurch.

* The Stewarts previously controlled the listed electronics firm PDL Holdings.

* They also have an interest in rival plastics moulding company Alto Plastics, which makes plastic bottles and packaging.