Bennamon ups Pact stake to 85%, boosts payment terms

The news: Kin Group and its subsidiary Bennamon Industries have increased their interest in packaging company Pact Group to around 85%, and are encouraging the remaining shareholders to sell while the price is high.

The numbers: Bennamon will pay shareholders within five days if they accept the current offer of 84 cents per share. Pact Group's price gained more than 20% when Bennamon first made its takeover offer, but even at its current market capitalisation of $296 million it's significantly lower than its valuation of $480 million in 2022.

The context: Pact is currently trading at $0.857, but Bennamon warned bag-holders it intends to proceed with compulsory acquisition once its stake reaches 90%, meaning a slower payment and a potentially lower price for sellers who wait.