Pact Group Delisting Clears Regulatory Hurdle as Panel Declines Proceedings
The Takeovers Panel has declined to investigate applications challenging Pact Group Holdings’ proposed delisting, signaling regulatory acceptance of the move. The decision clarifies the Panel’s jurisdiction and leaves the delisting process on track.
- Takeovers Panel declines to conduct proceedings on delisting challenges
- Applications from Jeremy Machet, Scrap Invest Pty Ltd, and Jeremy Raper dismissed
- Panel finds no impact on control or substantial interest acquisition in Pact Group
- No reasonable prospect of declaring unacceptable circumstances
- Detailed reasons to be published later by the Panel
Regulatory Decision on Pact Group’s Delisting
The Takeovers Panel has formally declined to conduct proceedings on two applications challenging the proposed delisting of Pact Group Holdings Ltd (ASX: PGH). The applications, lodged by investors Jeremy Machet, Scrap Invest Pty Ltd, and Jeremy Raper, questioned the circumstances surrounding the delisting announced on 29 April 2025.
The Panel’s decision, announced on 22 May 2025, was unanimous. It concluded that the matters raised did not fall within its jurisdiction because they did not affect control or potential control of the company, nor did they involve the acquisition of a substantial interest as defined under relevant takeover laws.
Implications for Shareholders and Market
This ruling effectively removes a significant regulatory hurdle for Pact Group’s delisting process. Investors who had hoped the Panel might intervene to delay or alter the delisting now face a clearer path forward for the company’s transition away from the public market. While the Panel’s reasons for the decision are yet to be published, the outcome suggests that the delisting does not trigger takeover protections or concerns about control shifts.
For shareholders, this means the company’s plans to delist remain intact, though questions about valuation and exit options remain pertinent. Market participants will be watching closely for the Panel’s detailed reasoning, which could shed light on the regulatory interpretation of delisting events and shareholder rights in such scenarios.
Looking Ahead
The sitting Panel comprised Timothy Longstaff, Rory Moriarty (President), and Erin Tinker, with Allan Bulman serving as Chief Executive of the Takeovers Panel. Their decision underscores the Panel’s cautious approach to intervening in delisting matters unless clear control issues arise.
As the Panel prepares to publish its full reasons, analysts and investors will be keen to understand any nuances that might influence future delisting proposals or shareholder challenges. Meanwhile, Pact Group’s management can proceed with their plans, but the broader market will remain alert to any ripple effects this decision might have on corporate governance and shareholder activism in Australia.
Bottom Line?
The Takeovers Panel’s refusal to intervene clears the way for Pact Group’s delisting but leaves key questions about shareholder impact unanswered.
Questions in the middle?
- What detailed reasoning will the Takeovers Panel provide for declining to intervene?
- How will shareholders respond to the delisting now that regulatory challenges have been dismissed?
- Could this decision set a precedent affecting future delisting disputes on the ASX?
