Pact Group tight-lipped over sell-off rumours
The Australia-based firm, which produces bottles, PET containers, trays, tubes and closures, has appointed Deutsche Bank to assess a raft of options, including the sale of a hefty stake likely to attract some major interest, said Reuters.
Citing people familiar with the matter, the news agency said the Pact owner Raphael Geminder, was considering off-loading a 20-30% share in the company that was forecast to catch the attention of private equity and rival international firms.
An overseas buyer is seen as desirable to expand Pact’s access into foreign markets.
Billion dollar turnover
Pact has an annual turnover reaching A$1.2bn (US$1.18bn, €942m) and manufactures packaging for the food, beverage, dairy, bakery and meat sectors.
Geminder, who has a controlling stake in the firm, is the son-in-law of the late Richard Pratt, owner of Visy Industries, who amassed a A$5.5bn prior to his death in 2008.
Both Pact and Deutsche Bank declined to comment on the matter.
In 2010, there were rumours the Pact Company was considering an initial public offering (IPO) as part of a rumoured strategy to expand aggressively both at home and abroad. However, the floatation never took place.
Proposed Viscount Plastics takeover
Last month, Australian competition authorities gave Pact the go-ahead to buyout Viscount Plastics Pty Ltd.
Viscount manufactures and supplies PET containers in Western Australia. But its main operations focus on plastic pails, plastic building cartridges and materials handling products.
Officials in New Zealand earlier this month approved the takeover of Viscount pail business by Pact – as long as the Australian firm off-loaded its own pail-making unit in the country.
Pact supplies plastic pails and many other plastic products in New Zealand through its subsidiaries: VIP Packaging (NZ) Limited, Alto Packaging Limited and Tecpak Industries Limited.