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RPC Group (RPC)
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- Lemon Quarter
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RPC Group (RPC)
The Board have recommended acceptance of an offer from Apollo at 782p which seems very low. It seems ridiculous to actively put a company on the market while all this Brexit shambles is going on. I can't help thinking that this bit of the circular speaks volumes and that it's all about feathering their own nests:
"The Bidder believes that the ongoing participation of senior management of the RPC Group is very important to the future success of the RPC Group. Accordingly, the Bidder intends to put in place certain incentivisation arrangements for selected members of senior management of the RPC Group with effect from and/or following completion of the Acquisition."
I wonder whether screwing the best deal for themselves was the cause of the protracted length of the negotiations. As a shareholder who acquired her shares as a result of the BPI takeover in June 2016 when the price of RPC was higher (I haven't checked whether there have been any rights/scrip issues or consolidations since then) and considerably higher not long ago, I am unimpressed. Any other holders care to share their views?
"The Bidder believes that the ongoing participation of senior management of the RPC Group is very important to the future success of the RPC Group. Accordingly, the Bidder intends to put in place certain incentivisation arrangements for selected members of senior management of the RPC Group with effect from and/or following completion of the Acquisition."
I wonder whether screwing the best deal for themselves was the cause of the protracted length of the negotiations. As a shareholder who acquired her shares as a result of the BPI takeover in June 2016 when the price of RPC was higher (I haven't checked whether there have been any rights/scrip issues or consolidations since then) and considerably higher not long ago, I am unimpressed. Any other holders care to share their views?
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- The full Lemon
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Re: RPC Group
You might have missed this brief topic yesterday:
viewtopic.php?f=9&t=15813
I've owned RPC for many years and it's done well for me, although not so much lately. But since I also owned BPI I ended up with too much, and split across two accounts as well which was annoying. So I sold half after the BPI event.
I will sell the rest now as it has had its bounce in the last month from 650 to 750 or so. To be honest the rights issues were annoying as I held in a taxable account and had to allow for that. Fool me once, shame on RPC. Fool me twice . .
viewtopic.php?f=9&t=15813
I've owned RPC for many years and it's done well for me, although not so much lately. But since I also owned BPI I ended up with too much, and split across two accounts as well which was annoying. So I sold half after the BPI event.
I will sell the rest now as it has had its bounce in the last month from 650 to 750 or so. To be honest the rights issues were annoying as I held in a taxable account and had to allow for that. Fool me once, shame on RPC. Fool me twice . .
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- Lemon Quarter
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Re: RPC Group
Thanks Lootman. I did miss the other thread; never look at that board.
Over on the ADVFN, there are a lot of unhappy bunnies who think they have been sold down the river.
Over on the ADVFN, there are a lot of unhappy bunnies who think they have been sold down the river.
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- Lemon Slice
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Re: RPC Group
Bouleversee wrote:I wonder whether screwing the best deal for themselves was the cause of the protracted length of the negotiations. As a shareholder who acquired her shares as a result of the BPI takeover in June 2016 when the price of RPC was higher (I haven't checked whether there have been any rights/scrip issues or consolidations since then) and considerably higher not long ago, I am unimpressed. Any other holders care to share their views?
There was a rights issue in Feb 2017 (I got 40 for a holding of 160 at a price of 665p and another similar proportion with another holding in another account).
I'm rather annoyed at this sale, as I feel it undervalues the company. I'll make a profit - my first purchase was in 2012 at 399p - but I would much rather hold as the yield is currently around 4.6% and I would expect them to increase in value if allowed to continue. Feels like the buyers are being allowed to pick it up during a market downturn and using plastic pollution as a scare tactic despite RPC being less affected by the issue.
cheers
Spiderbill
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Re: RPC Group
Thanks, Spiderbill. Do the price charts adjust for rights issues?
I've finally got around to looking up my records of purchases of RPC and I see I have topped up and taken up a rights issue since the takeover of my BPI shares, the prices being 860p (6. 9.16), 665p rights (10.2.17), 775p (4.6.18) and 737 (11.7.18), always thinking they were too cheap, so that explains why I can't get too excited about today's offer announcement. Am beginning to wonder whether they were so cheap for a good reason. I've lost track of my original base cost; fortunately they are in an ISA.
I've finally got around to looking up my records of purchases of RPC and I see I have topped up and taken up a rights issue since the takeover of my BPI shares, the prices being 860p (6. 9.16), 665p rights (10.2.17), 775p (4.6.18) and 737 (11.7.18), always thinking they were too cheap, so that explains why I can't get too excited about today's offer announcement. Am beginning to wonder whether they were so cheap for a good reason. I've lost track of my original base cost; fortunately they are in an ISA.
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- Lemon Quarter
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Re: RPC Group
I see from my records that I gifted my certificated RPC shares to my grandchildren on 4.4.17 at an M.V. of 803.5p so no premium there.
Aviva are not backing the offer and I hope other instis. won't either. The BOD had pretty good LTIPs IIRC. I wonder what they collected on them.
Ought to be zilch.
Aviva are not backing the offer and I hope other instis. won't either. The BOD had pretty good LTIPs IIRC. I wonder what they collected on them.
Ought to be zilch.
Re: RPC Group
“Aviva are not backing the offer and I hope other instis. won't either. “
Excuse my ignorance, but does that mean that the major shareholders like the Institutions need to give their blessing before the deal can be completed?
John
Excuse my ignorance, but does that mean that the major shareholders like the Institutions need to give their blessing before the deal can be completed?
John
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- Lemon Half
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Re: RPC Group
Bottletop wrote:“Aviva are not backing the offer and I hope other instis. won't either. “
Excuse my ignorance, but does that mean that the major shareholders like the Institutions need to give their blessing before the deal can be completed?
John
The major institutions hold 99% of RPC shares (412 million shares). As " owners" they can say Y/N to the deal. Will they make money?
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- Lemon Quarter
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Re: RPC Group
I think they only need 50% of acceptances. We should all do our bit, assuming our nominee holders ever tell us about it and permit us to vote, which jogs my memory. Didn't we discover last year that a nominee only has one vote regardless of how many shares are held on behalf of clients?
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- Lemon Half
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Re: RPC Group
Another "dissenter"
"Craig Yeaman of Royal London Asset Management, which holds a £45m stake in RPC, said he was “very surprised and somewhat disappointed” its board had agreed to back the offer “as we believe this materially underestimates the future prospects of the [company]”.
The article in the Telegraph (locked) says
"RPC bosses are due to receive bonuses through a scheme that Apollo will set up, details of which are yet to be announced "
"Craig Yeaman of Royal London Asset Management, which holds a £45m stake in RPC, said he was “very surprised and somewhat disappointed” its board had agreed to back the offer “as we believe this materially underestimates the future prospects of the [company]”.
The article in the Telegraph (locked) says
"RPC bosses are due to receive bonuses through a scheme that Apollo will set up, details of which are yet to be announced "
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- Lemon Quarter
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Re: RPC Group
It's a scheme of arrangement rather than takeover, I gather, and we will be in a similar situation as regards the power of our votes to that which arose re Unilever before, thankfully, they pulled the idea of moving to the Netherlands.
This is the thread that was running on HYP practical at the time:
viewtopic.php?f=15&t=13636&hilit=voting+through+nominees&start=260.
Am I allowed to post that link on a BB at ADVFN?
I'm not aware of any changes in the law since then. My shares are in an ISA with iWeb so is there any point in my making an effort to vote against this as I should like to do if my nominee has only one vote? The trustees of my grandchildren's shares which they hold in certificated form will vote against as a matter of principle.
This is the thread that was running on HYP practical at the time:
viewtopic.php?f=15&t=13636&hilit=voting+through+nominees&start=260.
Am I allowed to post that link on a BB at ADVFN?
I'm not aware of any changes in the law since then. My shares are in an ISA with iWeb so is there any point in my making an effort to vote against this as I should like to do if my nominee has only one vote? The trustees of my grandchildren's shares which they hold in certificated form will vote against as a matter of principle.
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- Lemon Quarter
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Re: RPC Group
Yippee! Berry Global have said they are considering making an offer and asked for the DD stuff. I hope they do and it goes SKY high.
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- Lemon Quarter
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Re: RPC Group
I see the price today has moved above that offered by Apollo, as you say this could improve the price. I'd still be sad to see a steady little earner nicked from my portfolio.
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Re: RPC Group
kempiejon wrote:I see the price today has moved above that offered by Apollo, as you say this could improve the price. I'd still be sad to see a steady little earner nicked from my portfolio.
So will I but at least a decent price would be some consolation.
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- Lemon Slice
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Re: RPC Group
Interesting Bloomberg commentary just appeared on Yahoo
https://finance.yahoo.com/news/goldman-sachs-makes-brave-m-121514879.html
Not massively good news but if it went through it would give us a little bit more solace.
Spiderbill
https://finance.yahoo.com/news/goldman-sachs-makes-brave-m-121514879.html
Not massively good news but if it went through it would give us a little bit more solace.
Spiderbill
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- Lemon Quarter
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Re: RPC Group
There is an argument running on the ADVFN BB as to whether Apollo could increase their bid or not if Berry came up with a higher offer than they had made, which they said was their final offer. Any expert views here? Does it make any difference that the Apollo bid was by means of a Scheme of Arrangement rather than a straight takeover?
Re: RPC Group
Does anybody know whether it is still possible for the potential takeover to be completed within this tax year (ie by April 5th)?
I acquired RPC because they took over British Polythene, and although RPC has been a bumpy ride, I still have a substantial capital gain due to the eventual price RPC paid for BPI.
In my perfect world, the whole RPC thing will drag out into the next tax year and allow me to play around with my CGT allowance and ISA limit with the rest of my portfolio as I see fit.
Reebus
I acquired RPC because they took over British Polythene, and although RPC has been a bumpy ride, I still have a substantial capital gain due to the eventual price RPC paid for BPI.
In my perfect world, the whole RPC thing will drag out into the next tax year and allow me to play around with my CGT allowance and ISA limit with the rest of my portfolio as I see fit.
Reebus
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- The full Lemon
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Re: RPC Group (RPC)
Reebus wrote:Does anybody know whether it is still possible for the potential takeover to be completed within this tax year (ie by April 5th)?
I acquired RPC because they took over British Polythene, and although RPC has been a bumpy ride, I still have a substantial capital gain due to the eventual price RPC paid for BPI.
In my perfect world, the whole RPC thing will drag out into the next tax year and allow me to play around with my CGT allowance and ISA limit with the rest of my portfolio as I see fit.
Unlikely in my view that it could be completed in just a few weeks, given the need for regulatory approval and shareholder votes. And the M&A folks handling the deal will be conscious of the tax situation.
Sometimes in these situations there is a rollover option, so that a taxable gain is not crystallised, so that's another possibility.
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- Lemon Half
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Re: RPC Group
Reebus wrote:Does anybody know whether it is still possible for the potential takeover to be completed within this tax year (ie by April 5th)?
The latest timetable I've seen is dated 19 February 2019 here https://www.londonstockexchange.com/exc ... 73521.html
It suggests the cash takeover would occur two days after the Court Hearing which is anticipated to take place on A date expected to be in the second quarter of 2019, subject to regulatory clearances .
That subject to Berry Global not announcing its intention to make an offer for plastic packaging manufacturer RPC Group PLC by March 13 2019 as per https://www.londonstockexchange.com/exc ... 39200.html
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