Pro Pac major shareholder breaks voluntary escrow; sells 10pc of the company
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One of Pro Pac Packaging’s major shareholders is ending a voluntary escrow and selling down 10 per cent of the company’s register.
Advent Partners received 145.9 million shares (ASX:PPG) worth 37.5c each for its part in the packaging and distribution group’s takeover of a rival in September last year.
Half were supposed to be escrowed until after the 2018 full-year results and the other half after the 2019 results.
Advent is selling 59.6 million shares for 38c each.
“Following careful consideration, the PPG board has concluded that the transaction is in the best interests of PPG’s shareholders,” Pro Pac said.
Bell Potter is in charge of finding buyers for the shares.
Pro Pak says the sale is in line with a strategy of share register renewal and improving liquidity.
But putting the lie to this aim is the fact that 39 per cent shareholder Bennamon is buying almost half of the available shares.
Bennamon is set to become a 43 per cent shareholder in Pro Pac.
It has also promised to buy any shortfall.
PPG chairman and ex-Australia Post boss Ahmed Fahour called the move by a major shareholder to sell down a positive step, as it allowed for the prospect of adding new shareholders.
“PPG will seek to introduce further shareholders to the register. Despite some short term headwinds the business has experienced, the board has considerable confidence around the Company’s new growth strategy, its synergies with the IPG acquisition and its prospects in FY19 and beyond,’ he said.
Pro Pac shares slipped 1.3 per cent on Wednesday morning to 37.5c.
Pro Pac has been contacted for comment.