RPC says takeover deadline extended for Apollo, Bain
Plastic packaging supplier RPC Group said on Monday that the deadline for private equity firms Apollo Global Management and Bain Capital to make an offer for the company has been extended again.
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RPC said it had requested that the Panel on Takeovers and Mergers extend the deadline as discussions with both parties remain ongoing. They now have until 1700 GMT on 3 December to either announce a firm intention to make an offer or walk away.
The initial deadline had been set for 8 October, but this was later extended to 5 November.
Numis said: "Confirmation that discussions remain ongoing with both Apollo Capital Management and Bain Capital, combined with the deadline extension, increases the probability of a deal, in our view.
"Based on Friday’s closing price the shares trade on Apr-19 P/E and EV/EBITDA multiples of 10.4x and 7.3x allowing scope for a bid to be at a meaningful premium to the current share price. However, we view the absence of an industry player as limiting the valuation upside, though today's news is incrementally positive for the share price."
At 1308 GMT, the shares were up 1.1% to 790.40p.