The Chair of publicly listed Pact Group Holdings Ltd. (ASX:PGH) has launched a takeover bid that aims to convert the firm to a private company. The move comes only a month after Pact sold 50% of its reusable plastic crate pooling business for AUD 160 million (USD 103 million) to global infrastructure investment manager Morrison & Co. Ltd. Documents lodged with the Australian Stock Exchange (ASX) by Pact Chairman Raphael Geminder's family-owned company Kin Group Pty Ltd, which he also chairs, value the bid at AUD 234 million (USD 150 million).

Pact's ASX statement said Geminder has advised the board of his conflict of interest and recused himself from the board for the duration of the offer period, which will be open for a month. Pact said the directors had not yet decided whether to recommend the offer to shareholders. News reports said the board is seeking independent advice on whether the offer is fair.

Pact's share price has risen since the ASX announcement. Kin Group, which, with other Geminder family companies, already owns 50% of Pact, lodged the bid in the name of its wholly owned subsidiary Bennamon Industries Pty. Ltd. Kin Group Managing Director Nick Perkins said in an ASX statement that Pact faces "a challenging operating environment with supply chain disruptions, inflationary pressures, fluctuating resin prices, labor constraints and macroeconomic uncertainty," which impact on its operational and financial performance.

Kin Group supported the 50% sale of the crate pooling business but said that reduced available cash flow.