25th Jan 2019 07:24
LONDON (Alliance News) - Two large RPC Group PLC shareholders have criticised the board's acceptance of a GBP3.32 billion takeover offer from funds managed by Apollo Management IX LP, the Financial Times reported on Thursday.
The newspaper said Royal London Asset Management and Aviva PLC believe the Apollo offer undervalues the FTSE 250 plastic packaging company.
"The exit valuation clearly underestimates future growth prospects that will now accrue to the buyer and the RPC management team," said David Cumming, chief investment officer for equities at Aviva Investors.
However, RPC said on Wednesday that the planned deal had the backing of its top-three investors, including Eminence Capital, which owns an 8.4% stake, and Canyon, which holds 7%.
Meanwhile, Royal London Asset Management holds just under 1.5% of RPC's stock and Aviva Investors has a 1.9% interest, according to the FT.
https://www.ft.com/content/f4b3fe4e-1fff-11e9-b2f7-97e4dbd3580d
The two companies have been holding talks regarding the acquisition since September, and on Wednesday RPC agreed to Apollo's final cash offer - which will not be increased - of 782 pence a share.
The offer price, together with the dividend, represents a 16% premium to RPC's closing price on September 7, the date before the first approach for the company's takeover was made. It is also 7.6% higher than the closing share price on Tuesday.
Related Shares:
AvivaRpc Group