Raphael Geminder’s bid to take 100 per cent control of Pact Group and delist it from the ASX is struggling to get over the line, so the deadline to accept his share offer has been extended again.
Geminder’s Kin Group is tantalisingly close to getting the 90 per cent of shares it needs to take total control, at that point it will be able to compulsorily acquire the remaining ten per cent. Kin has been stuck on not quite 87 per cent for several weeks now, and despite repeated warning from Kin, and the Pact board, over the consequences of not selling, the remaining shareholders are holding firm.
The offer, which was originally launched six months ago, has now been extended by a further three weeks until 22 March, with Kin giving itself the option to extend further. Kin and associated entities currently own 86.98 per cent of Pact. Of the remaining 13 per cent around five per cent is owned by two parties with whom Geminder is in dispute on a separate matter.
Kin has once again issued warnings to shareholders of what will happen if the company delists and they are still shareholders, and warnings that once the offer closes the company’s share price is likely to fall below the 84c offer. It is currently trading at 85c.
Half year revenues at Pact Group fell by 4.7 per cent in the six months to 31 December. The company achieved revenue of $951.2m compared with the $998.2 for the same period in the previous year. Its underlying EBITDA slipped by 2.9 per cent or $4m to $137m, while its underlying EBIT rose by 3.9 per cent or $2.9m to $78.3m.
Net profit after tax fell by 20 per cent to $21.1m, while reported net profit after tax was up by 148 per cent to $59.3m. Shareholders will not get a payout for the period and the company will continue with a suspended dividend.
Pact said the reduction in its revenues was due to reduced demand across the Australian industrial, health and personal care packaging businesses, as well as a late start to the New Zealand dairy season. Subdued demand in China also contributed to the Pact downturn.
