Shareholders in Pact Group have voted overwhelmingly in favour of the company’s proposal to delist from the ASX, despite opposition from several smaller shareholders.
The result was never in doubt, given that the move was instigated by Raphael Geminder, who owns close to 90 per cent of the shares. The vote was 90.73 per cent in favour, with 9.24 per cent against, with Pact now set to delist on 16 July.
Earlier this year Geminder had told shareholders that if his initial plan to take full control of the business by buying all the shares, or at least 90 per cent of them, did not succeed, he would seek to delist.
With Geminder falling just short of the required shares, he owns 87.9 per cent, that intention has now played out.
Minority shareholders Jeremy Raper, Jeremy Machet and Scrap Invest asked the Takeovers Panel to stop the vote, but the Panel declined to take any action.
Geminder, whose net worth is estimated at $1.58bn, launched a $234m bid to increase his 50 per cent stake in Pact Group to total control 20 months ago. But, despite extending and upping the bid 13 times, he failed to get his bid across the necessary 90 per cent shareholding line, falling just short, reaching 87.9 per cent. During the latter stages of the bidding process he made it clear to minority shareholders that he would look to delist if the bid failed, and that such a move may limit their options.
The Pact Board said the reasons for the delist proposal are low liquidity in the stock, the low level of trading, and the costs of maintaining an ASX listing, as well as the burden of compliance for an ASX listing, and the amount of time the board has to use for ASX matters.
Pact has just refinanced its debt, entering a senior debt facility of $700m, that will expire in two tranche; in June 2028 and June 2030, and a subordinate debt of $75m, which will expire in December 2030. The debt facilities replace all current debt options, which were due to expire in January next year.
Sanjay Dayal, CEO and managing director, Pact, said, “Near-term refinancing risk has been removed, and we retain capacity to continue planned growth projects.”
