Takeover target Pact cuts 175 jobs, pursues asset sales

Simon EvansSenior reporter

Oct 23, 2023 – 5.00am

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Key Points

Why it matters: Pact Group is a large packaging group which operates from 130 locations in 15 countries.
Rich Lister Raphael Geminder wants the other 50 per cent he doesn’t own, but has gained little traction.
Fund manager IML, which holds 6 per cent, says the offer is way too cheap.

Takeover target Pact Group has axed 175 jobs, put a Victorian business up for sale and is weighing up whether to proceed with a renewed attempt at selling its entire contract manufacturing business valued at close to $130 million.

The company’s second-largest shareholder, IML, continues to be scathing about the price of a buyout offer pitched by its major backer, Rich Lister Raphael Geminder, whose Kin Group in mid-September launched a 68¢-a-share bid at a time when the stock was trading at 67.5¢.