Rpc Investors - RPC

Rpc Investors - RPC

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Stock Name Stock Symbol Market Stock Type
Rpc Group Plc RPC London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 792.60 01:00:00
Open Price Low Price High Price Close Price Previous Close
792.60 792.60
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psn1: Morning all, like Lazarus, this post has returned from the grave. I'm looking for a bit of advice, if any of you learned investors have any to offer, I mean. I've done okish out of the RPC sell out, and was looking to stick the cash into something else, in the deluded Del Boy-esq hope i'll be a millionaire by this time next year (ha ha indeed). Do any of you think that gold is a decent investment at the moment? I hear a lot of chat about it, but for a novice, it's hard to guage the legitimacy of what I read. Any advice would be welcome.
billywhizz1: I know it's over optimistic and a bit late in the day, and certainly in view of Berry's final offer statement, but Elliott still could find like-minded shareholders and threaten to block the deal unless more cash is produced. Don't forget, Berry still needs 75% of RPC investors to approve the offer to get it over the line.
spot1034: They wouldn't have released the RNS this morning just because they are concerned about investors buying at above their offer price getting their fingers burnt. Why would that be any concern of theirs? More likely it's a way of warning any potential new rival that they will (or probably will) come back with a higher bid if that rival decides to enter the contest.
warik: I agree with all 3 as i have read that report on the news. Apollo will have to sit until everything concludes having said that the big investors may accept the offer in fear of the share price drop so little retail investors could profit/loss depending at what price they got in. As one of the investors who backed Apollo has already sold some of its shares at higher than Apollo's bid and there is nothing to stop from others to do. If everybody does sell the share price will plummet and i am not sure if there is appetite for RPC stock in the market as i can sell sell at highs and buys at lower than the sell price. Again i assume the same people are buying buy at a lower price.
whatsyourgame: Another interesting piece with some sound advice from Alistair Osborne in today's "Times": "Doing over your former owner is always a laugh. And where better than at RPC? After four months of talks, the plastics maker has rolled over and recommended a 782p-a-share bid from private equity outfit Apollo. And at a skinny premium to boot, only 15.6 per cent, including the interim dividend (report, page 45). Indeed, when RPC chairman Jamie Pike bobbed up with the £3.3 billion deal nine days ago, the verdict was pretty unanimous. As Numis Securities put it: it was a “low” price but “we do not expect competing bids”. Well, now look what’s happened. Berry Global has turned up late to the party, with the news that it is considering a possible offer in cash for RPC; enough to send the shares up 4 per cent to 795p. Who’s Berry? The US plastics outfit — owned for eight years by Apollo. In fact, Apollo was key to building Berry, investing $550 million in 2006, floating it in 2012 and making 3.5 times its money by the time it sold out. The links to Berry continue to this day: its ex-boss Jonathan Rich has been advising Apollo on its offer for RPC. And now Berry’s gatecrashing its bid. How’s that for gratitude? It gets worse because Apollo made its offer “final”. So, unless it finds a miracle way out, it’ll have to sit and watch, powerless to intervene, even if Berry offers a mere 1p a share more. Two RPC shareholders, Aviva Investors and Royal London, had already declared Apollo’s offer too low-ball. So it was no shock to hear Royal London’s Craig Yeaman declare that a putative new bidder “vindicates investor caution”. As he put it: “Apollo were always going to run this risk”, given the bid price. Neither does it reflect brilliantly on the RPC board. Yes, they had an auction — a process that saw rival bidder Bain Capital drop out. And RPC’s five financial advisers tried months ago to lure Berry. But it still doesn’t say much for the directors’ faith in their own skills that they recommended a bid at a 26 per cent discount to peer group valuations. Even so, there’s a long way to go. Who knows if Berry’s just on an opportunistic fishing expedition to get info on rival RPC — always a possibility when the chairman’s a Pike. Or if it’s really serious, cleverly waiting until the buyout house with the best knowledge of the sector, Apollo, had found no hidden nasties at RPC: a sort of due-diligence by proxy. Pouncing when Apollo can’t hit back looks doubly smart. Yet, Berry’s still got to go through both RPC’s books and its 32 sub-divisions. And its investors already seem lukewarm, with its shares falling 2.9 per cent to close at $49.25 in New York. Berry has little business in Europe, too — a boon for regulatory clearance but a possible bar to wringing out those £150 million-plus synergies on JP Morgan Cazenove estimates. Financing a deal looks tricky, too, with Berry almost four times geared. Deliverability must be an issue. So Apollo, which insists it’s paying a full price, may yet win. With RPC shares above the offer price, selling a few now would hedge against that." Fair enough as far as it goes, but Mr Obsorne seems to ignore the very real possibility that PRC may simply decide that Apollo's offer is too mean and choose instead to simply reject it. After all, the level of acceptances so far ar pitifully small
whatsyourgame: Michael Pooler - Financial Times 31 January 2019 "Berry Global Group, the US plastic packaging company, is seeking to gatecrash the £3.3bn takeover of its UK competitor RPC by a private equity firm. Berry revealed on Thursday that it was considering a cash offer for the FTSE 250 manufacturer, one of Europe’s largest plastic packaging makers, and had requested diligence information. The news comes just over a week after RPC recommended a cash offer from Apollo Global Management, following more than four months of talks and just hours before the expiry of a deadline for the bidder to make its intentions clear.  However two major shareholders, Aviva Investors and Royal London Asset Management, criticised the bid as undervaluing the company.  Apollo’s final offer of 782p for each RPC share is a 15.6 per cent premium on the stock’s closing price on September 7, the last day before discussions with Apollo were confirmed. Some analysts said it was low, but discounted the idea of an alternative buyer emerging so late in the process. Shares in RPC rose 3.7 per cent on Thursday to 795p as investors digested the possibility of a higher bid.  Indiana-based Berry said there was no certainty it would make an offer. “A competing offer from an industry player such as Berry, at a premium to the current valuation can be justified, in our view, offering scope for an enhanced offer for shareholders,” said Kevin Fogarty, an analyst at Numis.  RPC confirmed it had received Berry’s request for information, adding that it would engage with its new suitor in accordance with the takeover code and “in the interests of delivering best value to shareholders”. The UK-based company makes plastic products such as bottle tops, paint pots and asthma inhalers and has grown rapidly through a series of deals to reach annual turnover of £3.75bn. But questions over its ability to convert profits into cash, and concerns about the impact of tougher rules on plastic packaging, have weighed on its share price over the past year. Until December, it was also in talks with another private equity group, Bain Capital. Berry, which supplies products including prescription vials, drinks cups and tapes and generated revenues of $7.1bn in 2017, was owned by Apollo before it was floated in 2012."
whatsyourgame: jeffian - from The Times online 25.01.19: "A second big investor in RPC Group has protested against the £3.3 billion takeover of the British plastic packaging business by Apollo Global Management, the American private equity firm. Royal London Asset Management said it was “very surprised and somewhat disappointed” with the 782p-per-share cash offer from Apollo that RPC recommended to shareholders this week. Royal London is a top 20 investor in RPC with a 1.4 per cent stake worth about £45 million. Another shareholder, Aviva Investors, warned on Wednesday that Apollo’s bid had “not delivered fair value” to investors in the business."
warik: LONDON (Alliance News) - Brexit is making it difficult for companies to buy UK assets as lenders are shying away from sterling-denominated loans, Bloomberg News reported Tuesday. Private equity firm Apollo Global Management LLC has, according to Bloomberg, had to fund the majority of its offer for FTSE 250-listed packaging maker RPC Group PLC in dollar and euro loans. Bloomberg quoted people close to the deal saying the small portion of the deal that is funded in sterling is more expensive than the other currencies because lenders fear that a no-deal Brexit will damage the UK economy. This could cause the pound to fall further. The same sources told the financial news agency that auctions to buy assets in Melorose Industries PLC and United Technologies Corp fell through earlier in the year as lenders were reluctant to finance the deal. United Technologies cancelled the sale of its Chubb fire-safety and security business, citing "recent market volatility". Bloomberg said this was caused by prospective buyers coming in below expectations. Sales of UK assets are down 76% year-on-year, at USD3.8 billion, with Bloomberg attributing this to bank lenders reluctance to underwrite UK company risk on Brexit fears. Bloomberg quoted Eaton Vance Management portfolio manager Jeff Mueller, who said sterling is still attractive on a valuation basis "but the path to returns could be bumpy given the range of outcomes for Brexit". https://www.bloomberg.com/news/articles/2019-01-22/brexit-is-said-to-cut-borrowers-access-to-pounds-risking-m-a On Monday, the Wall Street Journal had reported that Apollo is in advanced talks to acquire RPC for more than USD3.8 billion and a deal could be announced as soon as Tuesday. Similarly, the Financial Times reported Tuesday that the world's biggest infrastructure investors have introduced a "blanket ban" on investing in rail, energy and water project in the UK. "Several influential" infrastructure investors told the FT that the UK's "very negative" and "hostile" political and regulatory environment means they are "highly unlikely" to make any further investment in the country. They emphasised that this had little to do with Brexit risk, but rather was about government policy. https://www.ft.com/content/d23400e6-1d6e-11e9-b126-46fc3ad87c65 By Paul McGowan; paulmcgowan@alliancenews.com Copyright 2019 Alliance News Limited. All Rights Reserved.
snowydays: By Ben Dummett and Miriam Gottfried Updated Jan. 21, 2019 12:37 p.m. ET Private-equity giant Apollo Global Management APO 2.40% LLC is in advanced talks to acquire RPC Group RPC 0.25% PLC, one of Europe’s biggest packaging companies, for more than $3.8 billion, according to people familiar with the matter. A deal could be announced as soon as Tuesday, marking the culmination of a protracted negotiation against the backdrop of mounting uncertainty over divorce talks between the European Union and the U.K., where RPC is based. Some bankers have suggested that political uncertainty and the resultant stock and currency-market volatility could crimp deal-making in the U.K., making it trickier for buyers and sellers to agree on a sale price. But the Apollo-RPC agreement offers further evidence that this view may be overly pessimistic for private-equity firms. Earlier this month, buyout firm Clayton Dubilier & Riceagreed to purchase a majority of U.K. catering operator WSH Investments Ltd. for $1 billion, including debt. The expected deal for RPC comes as the world’s major buyout firms are under pressure to invest the record amounts of cash they have raised to collect lucrative fees from their investors. In 2017, Apollo raised $24.56 billion for the largest-ever buyout fund. RPC, which designs and makes plastic packaging for food, beverage, personal-care and other sectors, first disclosed in September that it was in talks with both Apollo and buyout rival Bain Capital about a possible sale. Bain withdrew from the bidding in early December. Out-of-favor publicly traded companies or their divisions are often attractive targets as their relatively large size allows the cash-rich PE firms to invest the funds expeditiously to start generating returns. Last year, private-equity firms in Europe spent $61.1 billion on acquiring publicly traded companies—the largest annual sum since 2007, according to Dealogic. Driven largely by acquisitions, RPC grew revenue by 36% to £3.75 billion ($4.83 billion) for the year ended March 31, 2018, from the prior period, while net profit rose 92% to £253.4 million. Still, the company’s free cash flow fell 4% over that time, helping to explain RPC’s weak stock-price despite its earnings and profit growth. Investors have also been worried that efforts by the European Union to clampdown on plastic waste would reduce demand for RPC products. RPC, which employs about 24,000 people globally and operates in more than 33 countries, has said it doesn’t make any of the products that the EU is targeting. Before it first disclosed possible sale talks in September, RPC’s stock had declined 22% last year. It then jumped as investors bet on a deal, but it has since languished as talks with Apollo dragged amid political turmoil in the U.K. that increased the risk of no deal. That share-price weakness, though, represents an opportunity for Apollo if it can overcome the manufacturer’s challenges. Apollo’s offer price couldn’t be learned. On Thursday, RPC’s stock recently traded in London at £7.29, giving it a market value of £2.96 billion ($3.8 billion) and the private-equity firm is expected to pay a small premium to that level. The RPC deal isn’t particularly big for Apollo, but the acquisition will somewhat ease the pressure that the buyout firm is under to invest its cash hoard after dropping out of some auction processes for big acquisitions. Last year, Apollo withdrew from the bidding for the specialty chemicals business of Dutch paints maker Akzo Nobel NV, which a Carlyle Group LP-led group acquired in a €10.1 billion ($11.49 billion). Write to Ben Dummett at ben.dummett@wsj.com and Miriam Gottfried at Miriam.Gottfried@wsj.com
gambo555: WhatsyourGame..... I think youve got that range wrong mate. The share price was probably manufactured down before the initial talks...either way it was at arount 690p when they were revealed back in August. I would suggest the absolute MINIMUM would be a 30-40% premium on that i.e. 900 - 9.65 a share. Institutional investors as well as private investors will not let it go at a measly 8.30 - 870 - I say this especially so as Peel hunt has actually upgraded the stock with a BUY target of 1230p. In addition IF they do make a bid after 5 months of Due Diligence - i suspect that that will remove any doubt about there accounting practices etc...so you should see the share price appreciate back up quite quickly in my opinion. Also if a low ball bid appears at the level you describe I think the board will get shot down as it frankly would stink...they clearly are thinking about themselves and following their interests and want to go private, selling us down the river. Also I think that any bid unless its over 1000p will definitely see another bidder come into the Fray - maybe Bain or another player, such as SPOT1034 said...so in the event of an offer - i wont be selling....and in the event of no offer - i wont be selling either...Exciting times! GLA!!!!!!!
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