Rpc Share Discussion Threads

[gettingrichslow] 21/1/2019 23:47

Warik, if you only have 1000 shares why on earth are you getting so excited by all this, it's a matter of a few quid either way!?

[warik] 21/1/2019 23:26

That would be fantastic however they may take other things into account as well like outstanding debt which I think is over £1bn if I'm not wrong.

Sadly I have very limited experience with take over as when I had GKN Melrose gave much more than the share price and that was hostile takeover.

Imarsat the company pulled the bid back and then nothing happened.

This is my third time so I was quite disappointed after such long wait offered just current share price

Any advice for tomorrow if this opens under 750 would you recommend buy?

[gettingrichslow] 21/1/2019 23:19

Warik, if you only have 1000 shares why on earth are you getting so excited by all this, it's a matter of a few quid either way!?

[sogoesit] 21/1/2019 22:57

Last year’s revenue was £3.54bn.
Selling at one times sales implies 871p/share.
That would be about 18% premium to 740p.
Plus an 8p dividend on 25th this week.
Sounds cheap to me. But they might get away with that.

[warik] 21/1/2019 21:53

FTSE was negligible down. IMO i think the market knew of the bid therefore it came down probably as i was following the stock today. In the first 15 minutes it came about 715 I didnt top up expecting further drop never happened but the way it climbed I was prepared to buy at 741 then it dropped twice to 730 so I held back.

Anyways we will know tomorrow but I suspect how the stock came down and considering it's been hovering around 650-700 range most of the time I dont think they will gave away a lot however way cheap for Apollo considering how much money they have...if not for Brexit easy £10.

[bouleversee] 21/1/2019 20:54

Note that the FTSE is also down.

[dr_smith] 21/1/2019 20:25

warik. see post 2672.

[warik] 21/1/2019 20:15

what do you mean?

[dr_smith] 21/1/2019 20:07

wyg. For the nth time, no one has mooted £7.25, that is the current share capital.

[warik] 21/1/2019 20:04

Expect 7am RNS tomorrow. Maybe the market knew about it therefore the price fell as I was waiting for 800. I dont think even 800 the large SH will accept it.

[whatsyourgame] 21/1/2019 19:55

If the Apollo offer is as low as is currently being mooted, i.e. circa 725p, then there has to be a real chance of them being gazumped by another party.
If this were not to happen then one is forced to conclude that they will have paid what the company is really worth, accompanied presumably by a Board recommendation.

[quick fit] 21/1/2019 19:52

Warik , consider yourself whacked 🤐

[warik] 21/1/2019 19:12

Only hold 1000 shares they would wack me like a fly lol

[bouleversee] 21/1/2019 19:02

Quite right. He should be writing to the BOD not the BB. Remember it's not over till the fat lady sings.

[dr_smith] 21/1/2019 18:48

coolrunnings.
Yes, you beat me to it.
$3.8 at todays rate = £2.95 sterling = todays market cap based on todays share price
Premium is default, no news there.

warik: Repeatedly posting same stuff serves to irritate me (and presumably other BB users). If you are not happy, you are venting anger in wrong direction. Most BB readers are likely in same position.

[budgiekevin] 21/1/2019 18:45

Phillis I don’t disagree with your reflection but personally I also suspect they are trying to solicit acceptances from a handful of major shareholders especially Standard Life Aberdeen. If SLA aren’t on board with the offer price then it will never be accepted as their 10% plus stake will influence many others. For all those predicting bid figures I haven’t seen one comment that uses EBITDA ratios to generate a bid range and that is all PE buyers care about. If the ratio offered (assuming an offer) is too low someone else will enter the fray

[phillis] 21/1/2019 18:40

On reflection - before the WSJ news - the short extension seems to be more to do with documentation than price haggling
Won't be long now

[snowydays] 21/1/2019 18:39

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 [e-mail] and Miriam Gottfried at [e-mail]

[warik] 21/1/2019 18:36

Could you accept 725p or even 750p. This is unacceptable offer probably based on fridays 657p pre-extension price.

[warik] 21/1/2019 18:33

yes I'm ok just not happy should hsve sold in September for 860. We will wait n see now.

[cool runnings] 21/1/2019 18:30

Are you ok?

[warik] 21/1/2019 18:25

Let's wait for official RNS. I dont think there is a genuine interest otherwise they wont leak the news via WSJ.

[cool runnings] 21/1/2019 18:22

It's not Warwick ffs !