Powerflute has decided not to accept Madison Dearborn's preliminary takeover proposal. The company said it had terminated discussions with the potential buyer.
Finnish company Powerflute, which includes cores and coreboard company Corenso, will not be sold after all. The company reported that following evaluation of the proposal and consultations with major shareholders,discussions between Powerflute and Madison Dearborn, the potential buyer, were terminated.
US private equity firm Madison Dearborn Partners had recently made a preliminary proposal to acquire the entire share capital of Powerflute. This would have included Powerflute's semi-chemical fluting mill in Kuopio, Finland with a capacity of 280,000 tpy. Powerflute furthermore produces coreboard and cores through its Corenso business. Corenso has a capacity of 300,000 t of coreboard and 230,000 t of cores, according to Powerflute.