November 5, 2018 / 7:36 AM / 12 days ago

RPC extends deadline again for bids from Apollo, Bain

FILE PHOTO: A reporter raises his hand to ask a question during a news conference by Bain Capital LP Managing Director Yuji Sugimoto (not in the picture) in Tokyo, Japan October 5, 2017. REUTERS/Kim Kyung-Hoon

(Reuters) - RPC Group (RPC.L) further extended the deadline for private equity firms Apollo Global Management (APO.N) and Bain Capital to make firm takeover bids for the plastic packaging maker.

The PE firms, which are considering rival takeover offers, now have until Dec. 3 to make firm offers or walk away, as the company extended the deadline for a second time on Monday.

RPC’s shares have risen 14 percent since the company said in September it was in talks with Apollo and Bain. As of Friday, the company had a market value of 3.18 billion pounds.

Private equity has always been attracted to the plastic sector’s reliable cash flow and growing demand from online shopping, with a spate of takeovers by bigger packaging players further spurring their interest.

The original deadline for the offers was set for Oct. 8 and extended to November 5.

RPC, which has spent over $1.5 billion (1.2 billion pounds) 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 Co (GPK.N) for $95 million on a debt-free basis.

Reporting by Shariq Khan, Samantha Machado and Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty

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