With Pact Group set to delist from the ASX in July, Raphael Geminder is now one step closer to taking full control. He already owns around 88% of the company via Kin Group, and the upcoming delisting looks like the final move in a long game to turn Pact into a private company under his complete control.
The official reasons given are the usual ones low trading liquidity, concentrated shareholding, and ongoing compliance costs. But let’s be honest, the reality is this gives Geminder near-total control without the public market breathing down his neck. For minority holders, it looks like a lose-lose, either sell now into a relatively thin market, or hold onto unlisted shares with no liquidity, no transparency, and zero influence.
Once delisted, expect Geminder to run Pact how he wants. That means shifting into an executive role, continuing the cost cutting (they're already chasing $20m in annual savings), and keeping dividends off the table while they pay down debt or restructure. The company will have way more flexibility to do what it wants behind closed doors.
So is this good for shareholders? For Geminder, of course it is he gets full control without paying a premium. For the rest of us, not so much. Unless you’re prepared to be locked into a private company with no clear exit, holding after delisting could feel like a dead end. There might be upside down the track and the very real probability of a clean up of remaining shareholders at a price I'm sure will be linked to the TIC Founders holding, sure it’s a high risk bet with limited visibility , but if you believe his end game is 100% THEN HOLD ON!
Now is the time to reassess. Is there really any upside with a clean up offer and if so what price and how far down the track? for minorities once we’re off the boards it will feel like the abyss? Personally, I will hold and have a couple of buy orders in place if it gets sold off in the lead up to JUNE 30
Curious what others are doing — holding or selling?
Remember we are still owners of a real company that is in the process of reaping the rewards of many millions of dollars of investment which we helped pay for and as much as I hate to say it RG is a the right man at the helm and the turn around is in progress, if he wins we win!!!!! GLTAH
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