Pacific Current Group has rejected a non-binding offer from Roc Partners, citing valuation and shareholder fairness concerns, while continuing to review a separate proposal from River Capital involving a potential share issuance at $13 per share.
- Roc Partners' May 2026 proposal declined over valuation and equity concerns
- Pacific Current open to revised all-cash offers for all shareholders
- River Capital proposal includes potential share issuance at $13 per share
- Strategic review ongoing with update expected by 12 November AGM
- No certainty any transaction will proceed
Roc Partners Proposal Rejected Over Valuation and Equity Issues
Pacific Current Group Limited (ASX:PAC) has formally declined a confidential, non-binding indicative proposal from Roc Partners received in May 2026. The offer, which was conditional and speculative, proposed a structure largely funded from Pacific Current's own cash reserves but included differential consideration among shareholders.
Pacific Current's board assessed the proposal and concluded that the cash consideration undervalued the company relative to their own fair value assessment. More critically, the proposed scrip rollover would have created unequal economic outcomes for shareholders depending on their ability to participate in Roc's scrip component. These factors led to the decision not to progress the transaction.
Invitation for Revised Proposals Offering Fair Cash Consideration
Despite rejecting the initial Roc proposal, Pacific Current has kept the door open for revised offers that provide all shareholders with fair cash consideration. The company reiterated this invitation in writing last week but has yet to receive any updated indicative proposals from Roc.
This stance underscores Pacific Current's commitment to equitable treatment of shareholders and value maximisation, a priority that has shaped its strategic review process.
River Capital Proposal Includes Share Issuance at $13 Per Share
Alongside the Roc proposal, Pacific Current is actively assessing a separate proposal from River Capital. This offer potentially involves the issue of new Pacific Current shares to River Capital at a price of $13.00 per share, as part of consideration for acquiring River Capital.
The company has previously disclosed a summary of this proposal in its 27 August 2026 announcement. The strategic review continues to evaluate the merits of this transaction as part of broader efforts to optimise shareholder value.
Ongoing Strategic Review and Market Update Timeline
Pacific Current is inviting all bona fide expressions of interest that could enhance value for shareholders, with Flagstaff Partners acting as its financial adviser during this process. The company plans to provide a further update on the strategic review at or before its annual general meeting scheduled for 12 November 2026.
Importantly, Pacific Current cautions that there is no guarantee any transaction, whether with River Capital, Roc, or others, will proceed or be completed. The company remains committed to continuous disclosure of any material developments as they arise.
Bottom Line?
Pacific Current’s strategic review remains fluid, with a clear preference for transactions that deliver fair, cash-based value to all shareholders, but the path to a deal is far from certain.
Questions in the middle?
- Will Roc Partners submit a revised all-cash proposal that meets Pacific Current’s valuation and fairness criteria?
- How might the potential share issuance to River Capital at $13 per share impact Pacific Current’s capital structure and shareholder dilution?
- Could other bidders emerge before the November AGM, reshaping the strategic review’s outcome?