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Highlights
- Pact Group (PGH) faces scrutiny from minority shareholders amid delisting efforts
- Two complaints have been filed with the Takeovers Panel over the proposed privatisation
- Delisting bid draws criticism over shareholder fairness and transparency
Controversy is mounting around the proposed privatisation of Pact Group Holdings (ASX:PGH), a well-known player in the Australian packaging industry. Billionaire Raphael “Ruffy” Geminder, who currently owns about 88% of the company, is facing resistance from minority shareholders as he seeks to delist the company from the Australian Securities Exchange (ASX).
The latest objection comes from Jeremy Raper, an activist investor with a background at Goldman Sachs and head of Raper Capital. He has submitted a formal complaint to the Takeovers Panel, claiming that Geminder and his holding vehicle, Bennamon Pty Ltd, are not acting in a manner that serves the best interests of all shareholders.
Raper’s concerns echo a previous submission made earlier in May by Jeremy Machet and Scrap Invest. Both complaints focus on the transparency and fairness of the delisting process, particularly as Geminder inches closer to full ownership following his $234 million bid last year that lifted his stake to 87.9%.
Despite steadily acquiring more shares over the past week, the push to reach 100% control and remove the company from public listing is proving to be contentious. Critics argue that the structure of the transaction and ongoing share accumulation may be disadvantaging smaller stakeholders who want better clarity on valuation and governance.
The Takeovers Panel has acknowledged the complaints but clarified that no decision has been made yet on whether to proceed with a formal investigation.
This development is particularly noteworthy in the context of broader market trends. As investors continue to seek transparency and robust corporate governance, situations like this raise important questions about shareholder rights in companies listed on the S&P/ASX200.
For investors with an eye on reliable income-generating stocks, this situation may also serve as a reminder of the appeal of consistent ASX dividend stocks, where transparency and shareholder alignment are often more evident.
The outcome of this case could set a tone for how future take-private bids are scrutinized within the Australian market, particularly in high-profile names with considerable retail investor involvement.
