Thoughts on PGH potential takeover
Hi Team MM, Just wondering if you have any current thoughts around PGH and the proposed takeover... Any opinion on the outcomes, or relative merits are appreciated... Cheers Tony
The Latest Q&A
Answer
Hi Tony,
Packaging business PGH has received a 68c bid from major shareholder Raffy Geminder, who owns 50% of the shares, but given no premium and the independent report valuing the business above $1, the board has to try for more, which is what they are doing.
The stock has traded as low as 54c in June and hasn’t been meaningfully above $1.50 for over a year. Our “Gut Feel” is he will bid once more say around 75-80c but otherwise the compelling valuation story starts to fall away, and this deal is more about privatisation than a motivated buyer led takeover.
In the interim, they are reducing costs, last month the company axed 175 jobs- clearly a tough environment for PGH.
