Rpc Share Discussion Threads

[warik] 24/1/2019 07:41

No I won't buy more. What I meant the bullocks premium is based on that nonsense figures of 630 etc. So if the share price goes down to same numbers they still have honour their bid won't they?

[bouleversee] 24/1/2019 07:31

Warik

Do you mean you would buy more if they dropped to 625p? What if the offer then fell through and it fell further, giving you a double loss? Not so happy then, methinks.

[warik] 24/1/2019 07:18

I hope this goes back to 625p and then Apollo pays premium of 782 that will atleast make me happy.

[no dice] 23/1/2019 20:48

If GS were going short then that might be a reason to doubt the likelihood of the deal happening - but they were in fact willing to lend, so quite the opposite.

[warik] 23/1/2019 18:59

As per latest RNS GOLDMAN gave away 12m something shares open lending to short. No way this will get approved.

[warik] 23/1/2019 18:55

My gut feeling is the take over will be rejected and nobody will come. In the short term the share price will fall but it's ok we can deal with it but shouldn't give away company cheaply.

I will vote it down with my 1000 shares may not make difference but just principles.

[quick fit] 23/1/2019 18:47

Shareholder Name Amount
% Holding
Standard Life Aberdeen 39,483,505
9.72
AXA Investment Managers 18,564,213 4.57
Blackrock, Inc 15,986,367 3.94
Allianz Global Investors 13,886,467 3.42
American Century Investment Management 12,565,448 3.09
The Vanguard Group, Inc. 12,517,553 3.08
Dimensional Fund Advisors 11,319,652 2.79
Alken Asset Management 9,697,268 2.39
Barrow Hanley Mewhinney & Straus 9,575,562 2.36
Legal & General Investment Management 9,237,725 2.27
Source: Orient Capital

[warik] 23/1/2019 18:45

Best to check RNS they have up to date info including short %

[warik] 23/1/2019 18:43

Major Shareholders
Shares in issue: 405.9m 5p Ordinary Shares

Major Shareholders Information

These shareholdings were correct as at 11 June 2018.

TR-1 notifications can be emailed to [e-mail]



Shareholder Name Amount
% Holding
Standard Life Aberdeen 39,483,505
9.72
AXA Investment Managers 18,564,213 4.57
Blackrock, Inc 15,986,367 3.94
Allianz Global Investors 13,886,467 3.42
American Century Investment Management 12,565,448 3.09
The Vanguard Group, Inc. 12,517,553 3.08
Dimensional Fund Advisors 11,319,652 2.79
Alken Asset Management 9,697,268 2.39
Barrow Hanley Mewhinney & Straus 9,575,562 2.36
Legal & General Investment Management 9,237,725 2.27
Source: Orient Capital

[whatsyourgame] 23/1/2019 18:08

I view this as actually being a most encouraging stand by Aviva as the first insti to show its hand in deciding against accepting the offer. 1.93% is not to sniffed at, but more to the point, Aviva itself is hugely influential and many others may be expected to follow its lead.
In describing its offer as "final" (like they've already made a number of previous offers!), under Panel rules I believe this precludes Apollo from improving their offer even if they wanted to, except in circumstances where there were to be a higher competing offer, in the absence of which, therefore, they are stuck with their 782p all too refusable offer.
The next few days will be interesting to see the extent to which other instis decide to follow Aviva's lead and choose to make known their decision.
Does anyone have to hand please a list of RPC's major shareholders as last published in their Annual Report?

[bouleversee] 23/1/2019 17:51

Many a mickle maks a muckle.

[warik] 23/1/2019 17:35

AVIVA issued statement that they dont support the take over however they only hold 1.93%.

[jeffian] 23/1/2019 16:33

It will, of course, stand or fall on what the Insti's do but we can take some encouragement from the fact they are sitting on the fence at the moment.

[whatsyourgame] 23/1/2019 16:25

jeffian - Even if no alternative offeror emerges and I too think this is unlikely bearing in mind that, for whatever reason, the BoD appears fully committed to Apollo,
that said, it doesn't not mean that we should simply give up and sell out cheaply.
Voting down the offer, a route I will be following unless and until it goes unconditional, might result in the share price falling back in the short term but if the company's prospects are even half as good as the BoD has repeatedly been telling us year after year, then it won't be too long until the share price recovers to its previous highs. We might reach a point where the Directors' share options are once again "above water" which I very much doubt is the case currently.

[jeffian] 23/1/2019 15:52

And this from FTalphaville this morning -



"BE
RPC finally hit the tape this morning, ahead of this evening's repeatedly extended PUSU

BE
It's taken, what, at least four months to negotiate an outline deal to take a plastic packaging maker private. A deal that management wanted to happen very, very much.

11:52 am
BE
Kinda weird, that. Anyway. Exane incoming.
BE
While some shareholders may view the GBP7.82 Apollo cash offer as somewhat underwhelming, Exane believe it as better for RPC Group to go private, with possible reluctant support of shareholders, rather than the alternative of possible protracted multi-year public market restructuring. Accordingly, whilst retaining unchanged estimates, we raise our target price from 720p to 782p – the level of the recommended Apollo offer.
BE
The "likelihood of possible competing bids [is] low," they say. And it's hard to disagree.
11:54 am
BE

BE
Could this flush out other prospective buyers? We are doubtful that other prospective buyers are waiting in the wings. Since Bain withdrew from the process in December, there has been no press speculation as to the presence of any other potential bidders. We find it hard to identify likely strategic buyers as many of the peers have elevated financial leverage at this stage of the cycle. We think it unlikely there are many alternative financial/private equity buyers as the scale of RPC makes it too large for many mid-sized private equity firms. The possibility of a bid for RPC has been public since early September 2018 and the absence of any other interest means we think it is unlikely, though clearly not impossible, that others will appear now.

BE
Did I mention that RPC directors intend to vote in favour? Did I also mention that they account for 0.2% of the equity?
11:55 am
BE
Skin in the game."

[jeffian] 23/1/2019 14:47

I agree with whatsyourgame that there is a glimmer of light from the fact that they couldn't get anyone other than the Board to give irrevocable undertakings to accept the offer. In particular, they must have targeted largest shareholder Standard Life who started the ball rolling by suggesting that a takeover was on the cards. If they couldn't persuade a 'willing seller', it doesn't say much for the offer.

I shall be voting against. Although it makes little difference what PI's do, a large number of smaller shareholders voting against would send a message. If we're going to be sold down the river, I'd far rather see an all-share merger with someone like D S Smith (where I would likely reinvest the RPC proceeds anyway).

[jeffian] 23/1/2019 14:39

This is the Hargreaves Lansdown comment (for what it's worth!) -

"US private equity group Apollo Asset Management, has made a final bid for RPC of 782p per share. RPC shareholders will also be entitled to the 8.1p dividend due to be paid on 25 January.
The deal values RPC at £3.3bn - a 15.6% premium to the offer price the day before a potential deal became public.
The RPC board has recommended the offer, which is still subject to approval by RPC shareholders and regulators.
The shares rose 4.9% in early trading to 770p.

Our view
It's taken a while, but Apollo has finally made a firm bid for RPC - one of the worlds' largest manufacturers of plastic packaging.
The offer is some way below what analysts had suggested was plausible, meaning it's not impossible for a rival bidder to emerge. Another packaging group would probably be the leading candidate -thanks to the potential for cost savings, and a deal that could be part funded by the issue of new shares.
However, with plastic packaging far from popular and with the global economy looking rocky, it might be asking a bit much to expect a rival to fork out the best part of £4bn to keep RPC out of private equity hands.
It's a potentially disappointing result for investors - a 15.6% premium is hardly over generous and the shares have traded higher in the last 12 months. But with board backing and minimal regulatory concerns, we'd expect the deal to go through."

[billywhizz1] 23/1/2019 14:28

I'd say on a scale of 10.
Deal going through - 8.
Another 11th.hour bidder - 2.
The only hope of another bid would be integrational synergies with another plastic co. If the cost savings proved worth it, this would square the circle for all concerned. Fingers and everything else crossed.

[dr_smith] 23/1/2019 13:42

In answer to my own question, appendix 1 of offer has...

2.1 its approval by a majority in number of the Scheme Shareholders (or the relevant class or classes thereof, if applicable) on the register of members of RPC at the Scheme Voting Record Time, present and voting, whether in person or by proxy, ....

So, seemingly tad over 50% would do it.

[dr_smith] 23/1/2019 13:33

I am not familiar with how the shareholder acceptance mechanism works, but found this:



From 7.3 it says "In particular, the fact that acquiring 75% will generally enable a Bidder to delist the Target's shares is a powerful incentive for recalcitrant Target shareholders to accept the offer."

Given the low ball offer, many s/h's may prefer to hold and not let it be sold, seeing a greater return with status quo in medium to long term..possibly under new management.

Anyone know how it works now, is there a pre-defined percentage of s/h's that have to accept?

[warik] 23/1/2019 12:51

Well thats a good point i didnt think of as i didnt sell my 1000 as it didnt give me the full offer price. Looking at the share price there are loads of buying and selling. I dont know if the big sharks will accept or not also i dont expect Bain to come back and save us.

[bouleversee] 23/1/2019 12:45

Also, I expect a lot of people who bought low and are traders are taking profits now as they can't see it going any higher and want to move on.

[bouleversee] 23/1/2019 12:44

warik -

Why would anyone buy it at 782 if there is a recommended takeover at that price unless they thought the bid wouldn't go through at such a low price and/or another bidder might make a higher offer? Presumably MM doesn't think either of those is likely. I wonder how many are buying today anyway.

[warik] 23/1/2019 12:38

Well that PREMIUM bit is a BEAUTY however they disclosed that they were in negotiations from Aug 22 so maybe they have used figures that are favorable to BOD & Apollo assuming the SH are just BABIES and they will buy this rubbish. I still surprised the MM has not given us the full offer of 782 as open price.

The whole thing is a SHAM would have been better without a BID having said that the big sharks may accept it assuming if they reject the share price will collapse in absence of no other party interested.