Rpc Share Discussion Threads

[bouleversee] 14/1/2019 06:18

RL

I was cooking supper with the tv on in the next room and must have missed that bit. If it's profitable, there must be scope to make a fortune with all that backlog. Why on earth do they want to sell?

[redlad77] 14/1/2019 05:53

bouleversee

If you watched Countryfile then you would have seen the company they visited that were recycling plastic bale wrapping was indeed RPC.
Watch again on iPlayer and check out the RPC logo on the gentlemans hi viz vest.

Fingers crossed for a decent bid before Friday

RL

[jeffian] 13/1/2019 22:55

bouleversee,

IRV weren't involved in "recycling" anything. They were contractors who undertook to build incineration plants to burn waste and provide electricity as a by-product but they didn't have expertise in that area and the sub-contractors who did went bust and left them with the problem of completing the plants and picking up the damages for delay and non-performance. There is no comparison.

RPC are not involved in the types of plastic products which produce most pollution (o/t tell me, why does everyone under 30 think that they have to get water from a plastic bottle. Have they not heard of taps?). They are also heavily involved in recycling - both in the design of their own products and the use of recycled plastic in producing new products. If you believe their PR on the subject, RPC see themselves as part of the solution, not the problem, both by using recycled plastic themselves and designing products that are easily recyclable.

[budgiekevin] 13/1/2019 22:07

Bouleversee, RPC or more accurately the BPI division have been recycling agricultural waste polythene for decades. Well they definitely were when I was more up to date on the activities within BPI. Due to the contamination on the waste film much of it was recycled into a wood substitute for use in products such as bollards, sea groins and park furniture.

[bouleversee] 13/1/2019 20:47

What sort of recycling do RPC do? I ask because I watched this evening's Countryfile programme and was horrified to see acres of land occupied by rolls of plastic wrapping from agricultural products which used to go to China and Vietnam for recycling but now they won't accept. It didn't clarify whether that was because they had more than enough of their own to recycle or whether recycling was unprofitable (IIRC it was the failure of a recycling plant that brought IRV down but that doesn't necessarily mean anything). However, this stuff has to be got rid of so even if the original manufacturers are charged there must be money in it for someone who can devise an efficient way of recycling all this stuff.

[jeffian] 12/1/2019 23:34

Anyone holding their breath for 18 Jan?

No, me neither.

[dr_smith] 31/12/2018 06:11

snowydays: Extension was on 21st Dec:, so Thurs to week on Sunday was 10 days.
hxxps://uk.webfg.com/news/news-and-announcements/rpc-wrangles-yet-another-takeover-deadline-extension--3661819.html

It was some gentle fun on my part. :)
Happy New Year folks for later.

[snowydays] 30/12/2018 19:12

As a little aside, if you find yourself blocked from reading an article on IC and some other sites, a trick which sometimes works is to delete your browser cookies then search for the article on Google news and click the link from google.

[jeffian] 30/12/2018 18:47

Thank you, snowydays. Yes, the IC article is blocked to non-subscribers.

I remain cynical about a bid appearing, as I have been from the outset, but we shall see.

[snowydays] 30/12/2018 18:32

Jeffian, the link was to an article dated 27 Dec which I thought might be of interest to some people.

I note that the full article might not appear for some readers so I will copy it below.

,.......................

Apollo Global Management has been given another extension to make a formal offer for plastic packaging specialist RPC Group (RPC). The private equity group now has until 18 January to table a bid, with RPC noting that Apollo’s “due diligence is now substantially complete”, so it’s conceivable that an offer could emerge prior to that date.


RPC:LSE
RPC Group PLC

1mth
Today change
1.57% Price (GBP)
647.40
If a formal offer is tabled, it could flush out rival bids, particularly if it’s perceived as a low-ball approach. And despite the continued furore in the western media over the industry’s links to maritime pollution, the push towards consolidation shows little sign of abating with commercial incentives still intact – and expanding.

Market research from Radiant Insights shows the global rigid plastic packaging market growing at a compound annual rate of 5.57 per cent through 2018-2022, as “applications are rising enormously across the globe”, primarily due to the rapid growth in the e-commerce sector. Another significant factor is the increasing demand for pharmaceutical products among Asia’s rapidly expanding middle classes. None of this would have gone unnoticed by the private equity industry.

By now, you would imagine that any financial permutations arising from European directives on packaging recycling rates and the phasing-out of ‘single-use217; plastic packaging would be factored into share prices, though government commitments remain suitably woolly at this point. Nevertheless, it’s reasonable to assume that regulatory risks are increasing and will have a greater impact on valuations than in previous years.

IC View
Even so, what you might ascribe as ‘fair value’ to RPC shares rather depends on whether you concur with the criticism of the group’s accounting treatment levelled by Northern Trust Capital Markets in 2017. Certainly, as Peel Hunt notes, the group’s forward price/earnings and cash-profit multiples are significantly adrift of the implied rates from Amcor’s (ASX: AMC) $5.25bn (£4.14bn) bid for US packager Bemis Co (NYSE: BMS). And we have also witnessed a step-up in the number of short positions on the stock. But the fact that Apollo is still in the mix, having had access to due diligence materials for an extended period, suggests that it doesn’t perceive any glaring anomalies within the numbers. So, shareholders should sit tight for the moment, as any formal approach is likely to be at a marked premium to the current share price of 654p, an undemanding 8.5 times Bloomberg consensus earnings. Hold.

[jeffian] 30/12/2018 18:14

RPC Group PLC
EXTENSION TO DEADLINE UNDER RULE 2.6(C)

RNS Number : 2032L
RPC Group PLC
21 December 2018

[snowydays] 30/12/2018 17:36

Smithy, I think you will find that 27th to 30th is just 3 days.

I put the link there as there were some comments about the likelihood of a bid which I thought some might find interesting.

[quick fit] 30/12/2018 16:02

Dr Smith, I thought a juicy bit of news had come to light, I will turn my alerts off for the blog until nearer the time Happy New year all🍺🍷;🎉

[dr_smith] 30/12/2018 11:01

Snowydays. You must be way beyond our solar system for it to take 10 days for you to see and respond to the notice put out on www. ;-)
or maybe you have the fun things in life better prioritised than me. ;-)
I navigated here in response to yout post thinking my God, they wouldn't bid on a Sunday!

[bouleversee] 21/12/2018 16:48

Where are you going for your sunshine? Hope you don't get stuck at Gatwick.

[quick fit] 21/12/2018 16:33

Look on the bright side intrim dividend on the way,I’m going to get some sunshine and recharge my batteries £9:50 is my prediction 🤞

[bouleversee] 21/12/2018 11:29

I was hoping for at least £10 considering the share price was over that when they took over my BPI shares in Sept. 2016.

[jw121] 21/12/2018 10:53

A few months back i was looking at 1000. Now i think we will have to settle for 900 as a result of where the market has gone in the last couple of months. Anything less than 850 i would consider derisory. Interested to hear what others think about this.

[dr_smith] 21/12/2018 10:52

Smug mode on (for Red Dwarf fans).
I was spot on with my prediction in my above post. :-)

[bouleversee] 21/12/2018 10:48

So approximately what price can realistically be expected?

[jw121] 21/12/2018 10:41

Yes the board are desperate for the buyout to happen but who can blame them, they were half way through a clear and coherent strategy to consolidate a fragmented market which was widely approved of by the IIs. And this was then completely derailed by one single analyst and a nature documentary. So I do understand why they are disillusioned with their investors and the wider market and want a single private owner who will fully back their strategy to takeover. I agree with Phillis that it is just the debt package that needs to be put together now and this will require the debt markets to open up again in the new year.

[phillis] 21/12/2018 10:34

The BOD and their advisers are clearly in control of the process and are proving they are most amenable to a bid
Bain dropped out of the auction on 3 Dec only
I would guess both paties were given a lot of desk info and Bain's indicative offer was lower.

Apollo then probably proceeded to more detailed on site DD around the World and negotiations with banks to raise a large debt package (banks then have to do their own DD)

No more extensions after this one

[old_wheels] 21/12/2018 09:08

Place your bets..... will this buyout or Brexit happen first?