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RPC shareholders cash in

Some investors are beginning to sell down their position in the packaging group
February 13, 2019

Major RPC (RPC) shareholders are beginning to sell their holdings in the packaging group, as a takeover battle rumbles on. US private equity firm Eminence Capital, which sat among RPC’s top three shareholders at the time of Apollo Global Management's bid, has sold its controlling shares in RPC.  

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The shares are now trading above the 782p per share offer made by private equity group Apollo in January, which was accompanied by a letter of intent from Eminence backing the deal. US packaging giant Berry Global, which signalled its interest in RPC shortly after, has yet to table a formal bid.

Eminence – which had an 'economic interest' of around 7.6 per cent (a combination of controlling shares and exposure via unspecified financial instruments) – began reducing its controlling shares in RPC from the end of January. It informed Apollo on 31 January that it had sold 726,169 of its 2,996,835 ordinary shares, before going on to sell more of its holding over the first two weeks of February. Given that its economic interest now stands at 5.9 per cent, it is unable to comply with its letter of intent and vote in favour of the deal. Eminence did not respond to a request for comment.

JPMorgan Chase has similarly decided to capitalise on RPC’s share rise. It held a position of 4.35 per cent before Apollo’s bid, which reduced to 2.7 per cent by 8 February. JPMorgan and RPC both declined to comment.