MELBOURNE, AUSTRALIA — Pact Group Holdings Ltd., Australia's largest rigid plastic packaging manufacturer, is conducting due diligence with a view to buying Indonesia's main rigid plastics manufacturer.
A Pact spokesman told Plastics News buying Dynapack Asia is “still under review”, but the purchase “did not yet meet Pact's acquisition criteria” and the price is “higher than Pact is prepared to pay.”
She says Pact has an option until December and no date is set for Pact's board to decide whether to go ahead.
Dynapack is headquartered in Tangerang, a major city in Indonesia's Banten province, about 15 miles west of Jakarta. Its sales for the year to June 30 were A$235 million.
Dynapack is 50 percent owned by Indonesia's Hambali family and 50 percent by a Geminder Holdings Pty. Ltd. entity, but the spokesman says the company is not part of Geminder Holdings' shareholding in Pact. Geminder Holdings is the private company of Pact Group Chairman Raphael Geminder.
Dynapack has 17 manufacturing plants across four countries, Indonesia, Thailand, Vietnam, and Malaysia.
Any purchase would be subject to a range of conditions, including unanimous approval by Pact's independent directors; an independent expert's report and a majority shareholder vote.
Pact has set an ambitious target to be a A$5 billion (US$4.64 billion) company with operations in five regions within five years. For the year ended June 30, the company had sales of A$1.14 billion.