TORONTO - Royal Plastics Group Ltd. will retain control of its recently acquired recycled plastics business after the business becomes a separate public company. Royal said Biron Bay Resources Ltd. plans to make a takeover offer for Royal Ecoproducts Ltd., in which Royal holds a majority stake.
If the offer is successful, Biron Bay will be renamed Royal Ecoproducts Ltd.
Vic De Zen, Biron Bay's chairman, is also chairman, president and chief executive officer of Toronto-based Royal. Officials did not disclose the ownership structure of Bi-ron Bay and would not comment beyond a news release issued Oct. 30.
Biron Bay is a Toronto company and its shares are listed on the Alberta Stock Exchange.
Royal bought a majority interest in Ecopal Technologies Inc. less than two months ago and renamed it Royal Ecoproducts. The operation makes plastic pallets and building materials such as fake shale shingles by compression molding recycled polyolefins and rubber at a plant in Battle Creek, Mich. The purchase was a diversification move for Royal, which has concentrated on extruded vinyl building products.
In a news release, De Zen said the deal will give Biron an active business with proprietary technology and allow Royal Ecoproducts to focus on its expertise as a separate, publicly traded company.
If the takeover is successful, Biron Bay will be renamed Royal Ecoproducts and it would roll its current mining resource assets into a subsidiary that it would ``dispose of'' later. Biron Bay early next year will issue an information circular to shareholders regarding the takeover bid.
Herbert Hoedl, the minority shareholder in Royal Ecoproducts, said Biron Bay's takeover offer includes his 20 percent stake in the recycling company. He said in a telephone interview that after the deal he might still own a small part of Royal Ecoproducts.
Hoedl and partners founded Ecopal in 1991. Royal Ecoproducts's corporate office and engineering department is in Stoney Creek, Ontario.