Adam Weitsman of Upstate Shredding, LLC, a privately owned scrap metal processor and recycling center, has submitted a written proposal to the chairman, president and chief executive officer of Metalico, Inc. (MEA) to acquire all of the outstanding shares of MEA for $0.78 per share in cash.
Weitsman’s proposal represents an approximately 32 percent premium to the average market price of MEA’s shares over the past 30 days and an approximately 27 percent premium to the closing price of MEA’s shares on February 20, 2015. Weitsman currently owns approximately 11.7 percent of the outstanding common stock of MEA.
Weitsman’s proposal is conditioned upon the satisfactory completion of confirmatory due diligence, obtaining all material and necessary consents and approvals, including by MEA’s convertible noteholders and bank lenders, waiver of any company anti-takeover provisions, including redemption of the company’s poison pill, other customary conditions for a transaction of this type and size and the execution of a definitive agreement. Weitsman is prepared to open up discussions with MEA’s convertible noteholders and bank lenders and is highly confident of receiving their consent for this transaction based on Upstate’s financial strength and reputation in the industry. Upstate Shredding will pursue replacement financing if necessary.
Published in the April 2015 Edition of American Recycler News
