Billionaire Raphael Geminder is understood to have held talks with private equity firms about launching a buyout for Pact Group Holdings Ltd. (ASX:PGH) before making a $234 million takeover bid for the business. At that time, Geminder, the Chairman, owned about 40% of the business, and it was worth far more, but he has since crept up the register to own over half of the business that he originally listed back in 2013. Shares in the initial public offering were sold at $3.80 with its market value at $1.12 billion, and it came ahead of a capital spending program targeting technology.

Now the offer through his Kin Group is 68c, barely a premium to the 67.5c closing share price on 13 September 2023. The shares on 14 September 2023 closed at 72c, which suggests shareholders aren't prepared to deal at the offer price and hedge funds are getting in on the action. There's been chatter around a possible privatisation of Pact for years, but DataRoom understands Geminder has been working behind the scenes with private equity to determine if a deal could be thrashed out.

His relationships have been with major firms like TPG, The Carlyle Group, Kohlberg Kravis Roberts and Melbourne-based BGH Capital, say sources. The plan was where he would shift his holding into the privatised group, so he would not have to invest additional cash buying shares in the business. Some believed that in the past Geminder has either not had the cash himself to embark on a fully fledged privatisation or has not been willing to spend the money.

The offer is open for a month, and with it being unconditional it leaves open the opportunity for Geminder to buy shares at a higher price then lift his offer.