Billionaire Raphael Geminder to take Pact Group private

The news: Billionaire Raphael Geminder has made an offer to buy out the remaining shares in troubled packaging manufacturer Pact Group and take it private.

The numbers: Geminder’s Kin Group, which owns a 50% stake in ASX-listed Pact Group, has offered 68 cents a share in an off-market takeover offer for the remaining stake, slightly higher than the 67.5 cents closing price on Tuesday. Pact shares are down nearly 60% over the last 12 months.

The context: Pact, which reported a full-year loss last month, has suffered from softening demand for packaging from key customers amid tougher economic conditions. Kin Group said Pact was now a smaller business with a reduced earnings base, and its success could best be achieved without the additional costs, market volatility and complexities of being an ASX-listed company. Geminder’s Kin Group holds investments across retail, packaging and property, including in discount retailer The Reject Shop and Pro-Pac Packaging.