Pact recent news, page-236

Billionaire Raphael Geminder’s attempt to complete a $234m off-market buyout of packaging company Pact is set to fail, despite 13 extensions of his offer.

The bid was launched in September last year by Mr Geminder’s Bennamon Industries, a wholly owned subsidiary of Kin Group, which is his family office.

Mr Geminder founded Pact Group and is the brother-in-law of Australia’s richest man, Anthony Pratt. At the time of the takeover bid, he owned 50 per cent of the company’s shares.

The offer was improved in December from 67.5c a share to 84c – a 24 per cent premium on his original price.

This allowed Mr Geminder to build his stake to 87.86 per cent on Friday, still under the 90 per cent threshold needed for compulsory acquisition of the remaining shares.

Pact shares ended trade at 84c each ahead of the offer’s scheduled close at 7pm on Friday. The stock will be in focus when market trade resumes on Tuesday morning.

A major hurdle in the takeover bid has been the former owners of coat hangers and retail security tags company Tic Group, David Harris and Mark Gandur, who are in a long-running dispute with Pact over a $30m earn-out payment.

They have been accumulating shares and refused to sell their combined stake of 6 per cent into the takeover. The dispute is headed for a trial in April 2025 in the Victorian Supreme Court.


After the launch of the 14th offer on April 30, Kin Group said it was the “best and final offer” and there would be no further extensions to the offer period.

The company reiterated that it intended to seek to implement a number of significant changes to how Pact was governed and managed.

That included appointing its own nominees to the Pact board and exerting its control on decision-making; and reviewing Pact’s overall capital structure and capital management policies. Mr Geminder – who is currently non executive chairman – is seeking to take on the role of executive chairman. He plans to maintain the suspension of dividends for the foreseeable future.

Kin Group also intends to apply to delist Pact from the ASX which it will be able to do so in 2025.

Given Kin Group owns more than 87 per cent of the company it is likely that this resolution will be carried – irrespective of whether Pact Group has more than 150 shareholders with holdings of at least $500.

Pact’s 2024 financial year guidance was net financial leverage to be 2.8 times – above its previous guidance of 2.5 times and despite having received cash proceeds from the divestment of Crate Pooling.

The company said it had implemented a cost-savings program to reduce costs by $20m a year and that remains on track. It said it also remained on track to deliver 2024 financial year reported underlying earnings before interest and tax in line with consensus of $148m.


P.S what does every one thinks? At least the Australian out of courtesy published it after 7 pm. However, it only reported what Kin Group said before the takeover bid. It was like my argument with the James guy said on the Australian. Kin group said they do not intend to sell Pact shares but James said it doesn't mean they won't sell or never. Again, who knows the future?