Rich Lister angry over independent expert’s Pact valuation

afr.com:

Rich Lister Raphael Geminder’s Kin Group, which is attempting to buy out the other half of troubled packaging company Pact, has lashed out at an independent expert report which labelled the offer “neither fair nor reasonable”.

Kin Group, in a second bidder’s statement, accused independent expert Kroll Australia of producing an unbalanced valuation of Pact which “has the potential to mislead”.

The would-be suitor also warned shareholders that the Middle East conflict and geopolitical instability would likely put further downward pressure on the broader sharemarket which had already fallen 4.1 per cent since the offer opened. It also said the subsequent rise in oil prices would flow through to higher resin costs for Pact, putting further pressure on margins for a business which makes plastic bottles and containers.

Kin Group managing director Nick Perkins told The Australian Financial Review on Wednesday the offer was the main reason Pact shares had not been sliding in the market turmoil.

Rich Lister Raphael Geminder launched a buyout offer for the rest of Pact Group in mid-September. Josh Robenstone

“Our bid is there sustaining the share price,” he said. It was hard for anyone to predict the specific flow-on effect onto resin prices, but they would inevitably be higher if oil prices remained elevated for an extended period. “To quantify that is difficult.”

Rich Lister Mr Geminder and his Kin Group in mid-September launched a 68¢-a-share bid for the remainder of Pact at a time when the stock was trading at 67.5¢. Kin Group owned 50.02 per cent of the company at the outset, and has only managed to advance to 50.38 per cent in a bid which is scheduled to close on November 8.

An independent board committee, led by director