RPC extends deadline again for private equity suitors
FTSE 250 packaging company RPC today said it had asked regulators to extend the deadline for two potential private equity bidders to make a firm offer for the company.
Plastics maker RPC had previously announced that it was in discussions with private equity firms Apollo Global Management and Bain Capital.
Under takeover rules the pair were required to make a firm intention to make an offer or announce that they did not intend to make an offer by 5pm today.
The board of RPC asked the takeover panel to extend the deadline to allow discussions with its two suitors to continue.
Apollo and Bain now have an extra month to make up their minds, with the new deadline now set for 5pm on 5 December.
This is the second deadline extension with the original deadline set for 8 October.
In June the company revealed that it had been contacted by accountancy regulator the Financial Reporting Council in connection with its compliance with reporting requirements.
Analysts at Peel Hunt said: “The fact that Apollo and Bain are still in discussions gives us confidence that the debate around the supposed accounting issues is not a deal breaker.
"Clearly a bid is not guaranteed but if there was an issue with the numbers, logic suggests that Apollo and Bain would have walked away by now.”
Plans by UK and European governments to crack down on single-use plastics had led to investor concern that RPC could be affected, although the plastic-maker said proposed legilsation would not impact on its products.
RPC, which has spent over $1.5bn (£1.2bn) on acquisitions in the past two years to June, had earlier identified businesses for sale after months of pressure from investors to raise cash and cut spending.
In August, the company said it would sell Letica Corp’s food-service packaging business to Graphic Packaging Holding for $95m.
RPC's share price rose by half a per cent today.