Packaging compliance scheme Valpak has written to its members proposing a management buyout, following concerns over the “challenge” of Government waste policy.
The company’s independent directors have proposed to restructure Valpak as a limited liability company, chaired by its current executive management team, including its current chairman Lord Deben.
It has been proposed that existing members of its compliance schemes, who are ‘legal owners’ of the company, are paid an initial consideration of £170 for their share, with a further conditional deferred consideration of up to £270 for that share unless they wish it to be donated to charity.
The company has made the assurance that memberships will not be affected by the change in company status.
In a letter seen by MRW, Lord Deben wrote that the reason for the proposed buyout follows concerns about the Government’s deregulatory approach to waste policy.
He wrote: “We are now faced with the challenge of the coalition Government’s recently released review of waste policies. This sets out a strategy where the emphasis is placed on ‘voluntary agreements’ and ‘responsibility deals’ as opposed to further regulatory legislation.
“This will mean that Valpak, as a business, cannot continue to rely on legislated producer responsibility regimes alone. We currently have had largely flat targets for 2010-12 and, although the waste review contained a commitment to consult on packaging targets for 2013-17, it is uncertain at what level these targets will be set or even if they will be set at all.”
According to the documents, the restructuring would be effective from 26 August and the acquisition scheme effective from 30 August.