WEB NEWS Investor Alert
NEW YORK, NY--(Marketwire - Jun 13, 2011 ) - Levi & Korsinsky notifies investors in Graham Packaging Company Inc. (NYSE: GRM ) of claims of possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to Silgan Holdings Inc. (NASDAQ: SLGN ). Under the terms of the transaction, Graham Packaging shareholders will receive $4.75 in cash and 0.402 shares of Silgan common stock per Graham Packaging share they own. The transaction values Graham packaging stock at approximately $19.56 per share for a total transaction value of approximately $4.1 billion, including the assumption of debt.
Click here to learn how to join the action: http://zlk.9nl.com/graham-classaction , or call: 877-363-5972.
The claims concern whether the Graham Packaging Board of Directors breached their fiduciary duties to Graham Packaging stockholders by failing to adequately shop the Company before entering into this transaction and whether Silgan Holdings Inc. is underpaying for Graham Packaging shares. In particular, at least one analyst set a price target of $22.00 per share. Furthermore, on June 13, 2011 the Company announced that it received from an unnamed entity an unsolicited buyout offer at $25 per share.
A complaint challenging the transaction was filed in The Court of Common Pleas of Pennsylvania. If you own common stock in Graham Packaging and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500, toll-free: (877) 363-5972, or visithttp://zlk.9nl.com/graham-classaction .
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. The attorneys at Levi & Korsinsky have been appointed by numerous courts throughout the country to serve as lead counsel on behalf of shareholders in major litigations involving mergers and acquisitions. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.
Liquidity Requirements
We believe that capital expenditures to maintain and upgrade property, plant and equipment are important to remain competitive. We estimate that on average the maintenance capital expenditures are approximately $40 million to $50 million per year. Additional capital expenditures beyond this amount will be required to expand capacity or improve our cost structure.
For the year 2011, we expect to incur capital expenditures ranging from $165 million to $185 million. We also expect to incur some capital expenditures associated with the integration of the Liquid Entities into our operating network. We expect this number to be between $10 million and $20 million over the next two years. However, total capital expenditures will depend on the size and timing of growth related opportunities. Our principal source of cash to fund ongoing operations and capital requirements has been and is expected to continue to be cash flow from operations . We believe that cash flow from operations will be sufficient to fund our ongoing operations and foreseeable capital requirements.
Deal Flow
On January 13, 2011 , Graham Alternative Investment Partners I, LP exercised their right under the Exchange Agreement, dated February 10, 2010, by and among Graham Packaging Company Inc., Graham Packaging Holdings Company and the Graham Family Partners, to exchange on a one-for-one basis, Holdings’ limited partnership units for shares of the Company’s common stock, par value $0.01 per share. On January 13, 2011, GAIP, GCC and GPC acquired 1,500,000, 240,000 and 26,681 shares of the Company’s common stock, respectively, upon the exchange of the same number of Holdings’ limited partnership units. The Company issued an aggregate of 1,766,681 shares of its common stock to the Graham Family Partners in connection with such exchanges.
Comments & Business Outlook
YORK, Pa., July 1 /PRNewswire-FirstCall/ -- Graham Packaging Company Inc. (NYSE: GRM) today announced that its subsidiary, Graham Packaging Company, L.P., has successfully acquired China Roots Packaging PTE Ltd. ("China Roots") from PCCS Group Berhad, a Malaysian company. China Roots is a plastic container manufacturing company located in Guangzhou, China. Graham Packaging and PCCS Group Berhad completed the transaction on July 1, 2010.
China Roots operates a world-class container manufacturing plant in the Guangzhou Economic and Technological Development District. The plant makes plastic containers and closures for food, health care, personal care and petrochemical products. Its customers include several global consumer product marketers. China Roots' 2009 sales were approximately RMB 111 million.
The purchase of China Roots is the first operation for Graham Packaging in China. "The acquisition of China Roots opens up a significant new market opportunity for Graham Packaging," said Mark Burgess, CEO. "We are excited about taking a major step forward in our pursuit of global growth and serving our multinational customers in this important market."
Reverse Merger Activity
Graham Packaging Company Inc. (NYSE: GRM) today announced that its subsidiary, Graham Packaging Company, L.P., expects to acquire China Roots Packaging PTE Ltd., a plastic container manufacturing company located in Guangzhou, China . Graham Packaging has signed a Share Purchase Agreement to acquire from PCCS Group Berhad, a Malaysian company, 100% of the shares of Roots Investment Holding Private Limited, which will be the sole equity holder of China Roots. The transaction is expected to close during the second quarter of 2010.
Source: PR Newswire (April 5, 2010 )
