RPC Group plc is still in talks with U.S. private equity fund Apollo Global Management over a potential buyout offer, extending the submission deadline for a fourth time.
In a Dec. 21 statement, the United Kingdom-based packaging giant said the discussions were “well-advanced” and that Apollo had confirmed that its diligence was “substantially complete.”
RPC has now given Apollo until end of business Jan. 18 to announced whether it has the intention to make an offer for RPC.
The Rushden, England-headquartered packaging specialist announced in September that it was in talks with two U.S. private equity firms — Bain Capital and Apollo — over a potential buyout offer which could value the firm at £2.8 billion ($3.56 billion).
On Dec. 3 the company said it had mutually agreed with Bain to terminate discussions, but extended the deadline for the buyout offer by Apollo from Dec. 3 to Dec. 21.
The move to sell the company has been in response to what RPC Chairman Jamie Pike has described as pressure by investors.
"Pressure on the company's market valuation and differing investor views on the appropriate level of leverage is constraining the group's ability to pursue some attractive opportunities for growth and your board is working to resolve this," Pike said in an AGM trading statement in July.
"In the short-term, the group will prioritize cash generation and the announced disposal of our non-core businesses, with a view to generating increased capital for deployment in the business or further returns to shareholders,” Pike added.