Pact Group Moves to Delist from ASX Amid Concentrated Ownership and Low Trading

Pact Group Announces Voluntary Delisting Plan

Pact Group Holdings Limited (ASX: PGH), a major player in the packaging sector, has formally announced its intention to voluntarily delist from the Australian Securities Exchange. The move, subject to shareholder approval at an extraordinary general meeting (EGM) scheduled for 12 June 2025, reflects the company’s assessment that the costs and regulatory demands of maintaining a public listing outweigh the benefits.

The company plans to suspend trading of its shares on the ASX after the close of trading on 14 July 2025, with the delisting to become effective on 16 July 2025. This timeline provides shareholders with a window to exit their investments on-market before the shares cease to be publicly traded.

Rationale Behind the Delisting

The Board of Pact Group has cited several factors influencing its decision. Foremost is the highly concentrated nature of the shareholder register, with Bennamon Industries Pty Ltd, associated with the Kin Group and the company’s chairman, holding approximately 88% of shares. This concentration has contributed to low liquidity and limited trading activity on the ASX, diminishing the practical benefits of a public listing.

Additionally, the Board highlighted the significant costs and administrative burdens associated with compliance under the ASX regulatory regime. Management resources currently devoted to listing obligations could, in the Board’s view, be better focused on operational priorities and long-term strategic objectives.

Shareholder Approval and Bennamon’s Role

The delisting proposal will be put to shareholders via a special resolution at the upcoming EGM. Bennamon Industries and its associates, holding a commanding 88% stake, have indicated their intention to vote in favour of the delisting. This backing makes shareholder approval highly probable, though minority shareholders will still have the opportunity to voice their views.

Notably, the possibility of delisting was previously disclosed during Bennamon’s takeover bid, which closed in June 2024. Independent directors had flagged delisting as a potential outcome, providing shareholders with prior notice of the likely direction.

Post-Delisting Trading and Disclosure Obligations

Once delisted, Pact Group shares will no longer be traded on the ASX but will remain transferable through off-market private transactions. Shareholders wishing to sell their holdings will need to negotiate directly with potential buyers, a process that may reduce liquidity and transparency.

Despite delisting, Pact Group will continue as an unlisted disclosing entity provided it maintains over 100 shareholders. This status requires ongoing disclosure of material information and the lodging of annual and half-yearly financial reports, ensuring a degree of transparency remains.

Potential Shareholder Remedies and Next Steps

Shareholders dissatisfied with the delisting may seek remedies under the Corporations Act, including court orders if the delisting is deemed oppressive or unfairly prejudicial. The Takeovers Panel also provides a mechanism to challenge the process if ‘unacceptable circumstances’ are identified.

Investors should monitor the outcome of the June EGM closely, as well as any legal challenges that may arise. The delisting marks a significant shift in Pact Group’s market presence and shareholder dynamics, with implications for liquidity and corporate governance.