The management of Valpak have proposed a buyout of the company to its members.
Its chairman John Gummer, Lord Deben, has written to members asking them to give up their ownership of the company in return for an initial cash consideration of £170 with a further possible payment of £270 if the PRN system continues to exist beyond the end of this compliance period in 2012.
The reason given for the move is the ongoing uncertainty around the PRN system and the desire of the coalition Government to move towards voluntary agreements rather than further regulation and legislation. By engaging in this management buyout, the company would be able to diversify and develop its business by being a limited liability company, rather than a membership owned business as at present.
In the letter, Lord Deben wrote: “Valpak as a business cannot rely on legislated producer responsibility agreements alone. We currently largely have 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.”