Jan 24, 2019

Two shareholders attack Apollo’s ‘low’ bid for RPC

The proposed £3.3bn takeover of RPC, Europe's biggest plastic packaging company, has come under attack from two shareholders who say the bid from US private equity firm Apollo Global Management is too low. In our view, this protracted bid process has not delivered fair value to RPC's shareholders. "The exit valuation clearly underestimates future growth prospects that will now accrue to the buyer and the RPC management team. In our view, this protracted bid process has not delivered fair value to RPC's shareholders," said David Cumming, chief investment officer for equities at Aviva Investors. RPC said on Tuesday that the planned deal had the backing of Eminence Capital, which owns an 8.4 per cent stake, and Canyon, which holds 7 per cent. In laying out its reasons for recommending the bid, RPC said it was "Unlikely" that its shares would trade at the valuation level implied by the offer in the short to medium term.

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