PGH

0.00%

85.0¢ pact group holdings ltd

Ann: Supplementary Bidder's Statement, page-20

First 20 Last

Share
Profile

Follow
Growler74

222 Posts.

144

25/10/23

13:44

Post #: 70529741
Share

Originally posted by williamteddy: ↑

Rich Lister angry over independent expert’s Pact valuation

Rich Lister Raphael Geminder’s Kin Group, which is attempting to buy out the other half of troubledpackaging company Pact,has lashed out at an independent expert report which labelled the offer “neither fair nor reasonable”

Kin Group, in a second bidder’s statement, accused independent expert Kroll Australia of producing an unbalancedvaluation of Pactwhich “has the potential to mislead”.

The would-be suitor also warned shareholders that the Middle East conflict and geopolitical instability would likely put further downward pressure on the broader sharemarket which had already fallen 4.1 per cent since the offer opened. It also said the subsequent rise in oil prices would flow through to higher resin costs for Pact, putting further pressure on margins for a business which makes plastic bottles and containers.

Kin Group managing director Nick Perkins toldThe Australian Financial Reviewon Wednesday the offer was the main reason Pact shares had not been sliding in the market turmoil.

Rich Lister Raphael Geminder launched a buyout offer for the rest of Pact Group in mid-September.Josh Robenstone

“Our bid is there sustaining the share price,” he said. It was hard for anyone to predict the specific flow-on effect onto resin prices, but they would inevitably be higher if oil prices remained elevated for an extended period. “To quantify that is difficult.”

Rich Lister Mr Geminder andhis Kin Group in mid-September launched a 68¢-a-share bid for the remainder of Pact at a time when the stock was trading at 67.5¢. Kin Group owned 50.02 per cent of the company at the outset, and has only managed to advance to 50.38 per cent in a bid which is scheduled to close on November 8.

An independent board committee, led by director Michael Wachtel, on October 13 told shareholders to reject the 68¢ a share offermade by Mr Geminderbecause it was “neither fair nor reasonable”; Kroll valued the shares at between $1.06 and $1.51.

“Kin is concerned that the target’s statement is not balanced, is selective and has the potential to mislead,” Kin Group said on Wednesday.

Kin Group is annoyed that the Kroll report “makes prominent reference to a valuation based on a hypothetical scenario of an offshore packaging company” being able to acquire 100 per cent of Pact. But Pact already had over 50 per cent of the company and was not intending to sell.

The target’s statement and independent expert report did outline in fine print that a valuation range of 83¢ to $1.24 per share was appropriate for the minority stake owned by non-Kin shareholders, when a control premium was excluded.

Kin Group also said the risks to shareholders from holding out had not been properly outlined by Kroll. “There’s a disconnect really to where we are today,” Mr Perkins said.

“The target’s statement fails to appropriately caution shareholders of the prevailing macroeconomic uncertainty, risks and challenges facing Pact and that the Pact share price may fall after the offer closes,” the statement said.

Mr Geminder’s Kin Group has investments across retail, packaging and property, including a 20 per cent stake in discount retailerThe Reject Shop,66 per cent of Pro-Pac Packaging, and a 4.5 per cent stake in skincare and make-up distributor McPhersons.

Source: AFR

Expand

"Kin Group owned 50.02 per cent of the company at the outset, and has only managed to advance to 50.38 per cent in a bid which is scheduled to close on November 8."

PGH Price at posting: 72.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

DEG

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The winners & losers on market if negative gearing were gone

KAL

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

NAM

ACCC seeks Olam divestments before it can buy Namoi Cotton

The market's shrugged at China's stimulus measures all year. Why is this one different?

There are more pages in this discussion • 12 more messages in this thread...

First 20 Last

Add PGH (ASX) to my watchlist

(20min delay)
Last 85.0¢		Change 0.000(0.00%)		Mkt cap ! $292.6M

Open	High	Low	Value	Volume
84.0¢	85.0¢	80.5¢	$57.88K	69.93K

Buyers (Bids)

No.	Vol.	Price($)
1	2048	80.5¢

Sellers (Offers)

Price($)	Vol.	No.
85.0¢	8707	3

View Market Depth

No.	Vol.	Price($)
1	2048	0.805
2	13288	0.800
4	33527	0.790
2	50593	0.780
1	2200	0.700

Price($)	Vol.	No.
0.850	8707	3
0.860	19091	3
0.870	34275	2
0.880	1604	1
0.900	5950	2

Last trade - 16.10pm 27/09/2024 (20 minute delay)

PGH (ASX) Chart

Ann: Supplementary Bidder's Statement, page-20

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The winners & losers on market if negative gearing were gone

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

ACCC seeks Olam divestments before it can buy Namoi Cotton

The market's shrugged at China's stimulus measures all year. Why is this one different?

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Supplementary Bidder's Statement, page-20

Top Stories

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The winners & losers on market if negative gearing were gone

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

ACCC seeks Olam divestments before it can buy Namoi Cotton

The market's shrugged at China's stimulus measures all year. Why is this one different?

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News