The Keter Group, a global company that makes plastic products, is in the middle of a financial problem and has had to lay off almost 100 people. The American CEO, Alejandro Pena Keter, was hired in 2018 to take the company to a successful Nasdaq IPO. However, the IPO was later canceled. Moody’s lowered Keter’s credit rating for the second time in four months because of what Pena did. This included a failed IPO and a plan to restructure Keter’s debt.
Shareholders have filed a case against CEO Alejandro Pena, accusing him of corporate corruption, which adds to the company’s other problems. The case comes as Keter Group continues to have money problems and lay off workers. Pena had planned to go public with the company in September 2021, but the market had not given him any good signs about how much it was worth.
In 2016, BC Partners bought the company for $1.4 billion. The fund bought 80% of the shares for a total of $1.7 billion. Moody’s credit rating went down because BC Partners had to take out a lot of loans to pay for the purchase.
CEO Alejandro Pena Keter Under Fire After IPO Failure
The IPO failed because Keter heard bad things about the value of the IPO from the institutional market in the US. Keter thought that the business would be worth more than $3 billion.
Pena had no choice but to delay the IPO, which he decided to do a year ago before the world economic crisis started. At first, it seemed like the offering would just be put off, but signs from the market didn’t get better, and the offering was eventually scrapped. As part of Keter Plastic’s ongoing problem, the company fired almost 100 people. Calcalist has learned that most fired government and private workers in Israel are from Israel.
The group’s American CEO, Alejandro Pena Keter, failed to get the company ready for an IPO, so he was fired. The IPO was meant to involve the sale of controlling owners’ shares and the addition of nearly $800 million to the company’s funds. The IPO failed because Keter heard bad things about the value of the IPO from the institutional market in the US. Keter thought that the business would be worth more than $3 billion.
CEO Alejandro Pena Keter Under Fire After IPO Failure
The IPO failed because Keter heard bad things about the value of the IPO from the institutional market in the US. Keter thought that the business would be worth more than $3 billion.
Pena had no choice but to delay the IPO, which he decided to do a year ago before the world economic crisis started. At first, it seemed like the offering would just be put off, but signs from the market didn’t get better, and the offering was eventually scrapped. As part of Keter Plastic’s ongoing problem, the company fired almost 100 people. Calcalist has learned that most fired government and private workers in Israel are from Israel.
The group’s American CEO, Alejandro Pena Keter, failed to get the company ready for an IPO, so he was fired. The IPO was meant to involve the sale of controlling owners’ shares and the addition of nearly $800 million to the company’s funds. The IPO failed because Keter heard bad things about the value of the IPO from the institutional market in the US. Keter thought that the business would be worth more than $3 billion.
Under CEO Alejandro Pena, Keter Group continues to get worse.
Moody’s lowered Keter Group’s credit rating again, this time from Caa1 to Caa2. This is the second time in four months that the company’s credit rating has gone down.
In 2022, Keter made 1.6 billion euros in sales and had an EBITDA of 167 million euros. Moody says that in 2022, Keter’s sales went up by 3.7%, mostly in the first half of the year. Keter is a private company that stopped putting out financial reports after its first attempt to go public failed. Analysts, on the other hand, think that adjusted EBITDA will drop from 203 million euros in 2021 to about 144 million euros in 2022.
According to the study, the company has enough cash on hand to keep doing what it does until December 2022. It has 63 million euros in cash and cash equivalents, 102 million euros in credit that isn’t being used, and 31 million euros more against future income and goods. During 2023, the company’s liquidity got better, but the amount of liquid cash was not made public.
CEO Alejandro Pena Keter said, “Keter is taking responsible steps to ensure financial health and continued company growth in a world where markets are becoming more difficult.” Keter will do everything possible to help those affected find jobs.
Conclusion
The Keter Group is a global company that makes plastic goods. It is having financial problems, including a failed initial public offering (IPO) and a plan to restructure its debt, which caused Moody’s to lower its credit rating for the second time in four months. Shareholders have also filed a lawsuit against CEO Alejandro Pena Keter, accusing him of stealing money from the company.
The effects of Pena’s mistake are now being felt by the employees. In the past few weeks, about 100 Keter workers were let go because the company was trying to be more efficient and cut costs everywhere. The most recent financial data for the company shows that it is making more money but still losing money. Even though Keter has enough money to run its business, its future is still unclear as long as Pena is in charge.
