CCAA preserves and maximizes value for all stakeholders
It is the objective of the SISP proceedings under CCAA overseeing by the court.
Having approved the DIP loan kept the business in conditions to be sold at a premium from the multiple competing offers received benefiting all stakeholders, which is what is currently happening. When a trader recently asked Pwc about all the assets being counted in the sales price, they responded that they will try to get maximum value for all assets for stakeholders. Court documents have repeatedly stated these objectives:
“The continuing operations of the Sarnia plant are crucial to maximize as much as possible the price that may be obtained from a buyer or an investor interested in the Sarnia plant.”
“The Monitor, with the help of PwCCF, will continue the ongoing SISP and will work with the Company’s management in preserving enough cash to ensure that the SISP can be concluded. The restructuring plan will help to preserve value for all stakeholders.”
“Maintaining operations increases the likelihood of identifying a strategic buyer and as such increases the potential return for all stakeholders.”
“The Petitioners’ outside advisors have estimated that the sale of its assets to a strategic or financial investor will realize approximately twice the value for creditors and other stakeholders as compared to a forced liquidation;”
“We believe that the DIP loan will likely allow the maximization of value for all stakeholders.”
Nextant had stated that several companies from their strategic potential buyers list did approached Bioamber before interested in producing their products in their Sarnia plant. They must be feeling lucky now to have this opportunity to acquire this high capacity fairly new plant they have been salivating all over it for a while. The only problem, they are not the only ones interested.
A few were planning to build plants already. So we know they have big money available. But what if they can get an almost brand new plant at a discount instead of having to pay for its construction?
Myriant
Myriant is currently in the process of evaluating plan to build plants in key geographies across the globe for the production of bio-succunic acids and other high-value, green specialty chemicals in large established markets
PTT MCC
It is a JV between PTT and Mitsubishi Chemicals, was established to research, develop, manufacture and commercialize bio-based polymers. BioAmber could be vertically integrated within its supply chain.
A few others are probably partners that would not only benefit from the business revenues but cutting overhead costs automatically once they buy the business.
Mitsui Chemical
Mitsui Chemical is one of the leading firms in bioplastics and is diversifically present in many bio-based petrochemical alternatives, including bio-succinic acid production. Gaining ownership of BioAmber will further anchor its global presence in the industry.
Jul. 2011: Dow and Mitsui JV to turn sugarcane into bioplastics at world’s largest plant (William Reed Business Media)
Feb. 2016: Mitsui & Co. Invests Additional $CDN25 Million in BioAmber Sarnia (Newswire)
Cargill
"Certainly someone will come in and potentially buy it. The logical buyer will be Cargill who essentially supplies the yeast technology for this business. Cargill spent hundreds of millions of dollars in developing this yeast. They got Cargill to allow them to use this. Cargill essentially can come in and buy the company. There are a bunch of other players in Asia that could be interested.”
Jerome Hass, portfolio manager at Lightwater Partners speaking on BNN Bloomberg Canada
Mitsubishi Chemicals
Mitsubishi Chemicals is currently pursuing organic and acquisition investments in biobased petrochemical alternatives through internal R&D and joint ventures. The firm has already demonstrated proven interest in bio- succinic acid through its partnership with BioAmber.
April 2011: BioAmber Partners with Mitsubishi Chemical in Succinic Acid
Feb 2018: Mitsubishi Chemical Starts Full scale Sales of New Grade of ‘DURABIO’ Bio-based Engineering Plastic for Bottles
And another group of potential buyers are probably more interested in expanding their intellectual property portfolio and market share of the green bio market that has started to explode in demand.
BASF
Although currently has the potential to manufacture bio-succinic acid, BASF's production capabilities is relatively small compared to other global players. Acquiring BioAmber could transform BASF into a serious contender in the biobased niche.
DOW Chemicals
The acquisition of BioAmber could be an entry opportunity in the commercial production of bio-succinic acid with which DowDuPont has the financial and technical expertise for further scalability.
Aug. 2011: Dow Chemical Bets Big on Bioplastics (Motley Fool)
Jul. 2017: Chemical giants see growth in green, clean tech (Reuters)
Who do you think will emerge as the buyer but the one who pays the most.
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