8:10PM SEPTEMBER 13, 2023
.8:10PM SEPTEMBER 13, 2023
Even squillionaires need friends.And Melbourne packaging billionaireRaphael Geminderknew just who to call for help with the future of his listed but consistently underperforming Pact Group empire this week.Stepping up was low-key Sydney eastern suburbs businessman and investorlan Wolmanalong with his wife Janine, who have already played an instrumental role in the now unfolding pitch to privatise Pact Group.The Wolmans, who live harbourside on Point Piper’s Wolseley Road in a mansion Wolman a couple years ago talked about selling for his dream price of $100m, have been part of Geminder’s stock exchange journey with Pact from the start.A decade ago, as part of the Pact float, Geminder bought Wolman’s Cinqplast Plastop Australia packaging business in exchange for shares in the new listed company.On Tuesday, it was the Wolmans who sold Geminder the shares required to tip Geminder’s private Kin Group beyond 50 per cent ownership of Pact, asthe launch pad from which the businessman announced his $234m takeover bid to take Pact private
on Wednesday.Geminder – married toFionaGeminder– the daughter of late packaging billionaireRichard Pratt, established Pact after buying some assets from his father-in-law’s company Visy, which is now run by Geminder’s brother-in-law Anthony Pratt.The Wolmans sold Geminder 850,000 Pact shares from their self-managed Spider Superannuation Fund Pty Ltd at the offer price of 68c in an off-market trade that cost Geminder less than $600,000. Bear in mind, Pact floated at $3.80 a share in 2013. Ouch.Wolman now runs his financial interests out of his S&J Capital. Along with his soon-to-be cashed out remaining stake in Pact he has investments in hospitality and real estate.Wolman is also a part owner and a director of the Manly-Warringah Sea Eagles.His twenty-something daughterJodineis backed by her dad in online shopping platform Sortd.Geminder’s offer price for Pact values his stake at $117m.He only needs to find that again to bring a full privatisation to fruition.Financial adviser to the deal Macquarie, we are sure, will be able to come to the party with that.Source: The Australian
P.S Now we know where Ruffy got his shares from and who he is targeting. For the couple, they are related to Geminder through business connection, but for many retail shareholders, I don't see how a privatise company will be better than an ASX-listed company. Sure, every one is losing, but the story of one couple can not reflect many other investors and holders stories up here, is it? The book price was $1.50, now even after the selling of 50% crate pool division, let assume he got it all privatise up, then just sell it out by book price, he will still double up his investment, and if he keeps everything running, it will be more than $1.50/share just all for himself. I don't think many up here would accept his offer.
His main reason of privatisation was to run it without worrying about buying shares and reporting twice a year, and dividend pay out if possible. Now, the company is turning, slow, but turning and he wanted to buying it all in cheap price.
I think just about every company will need to have a financial report from management to the owner, right? So, now the reason for his privatisation is because he wanted to read it for himself and buy it cheap for himself? Isn't that way too selfish there?
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