LONDON (Alliance News) - Apollo Management IX LP has entered a memorandum of understanding with trustees of the RPC Containers Ltd pension scheme as part of its GBP3.32 billion cash offer for RPC Group PLC.
Apollo Management IX intends to acquire plastic packaging supplier RPC and has received a letter of intent from RPC shareholder Eminence Capital to vote in favour of its acquisition of RPC. At present, Eminence Capital holds 2.3 million RPC shares or 0.6% of issued capital.
The memorandum of understanding, according to Apollo Management IX, "provides mitigation for the impact of the Acquisition on the RPC Containers Scheme by way of additional cash contributions of GBP5.2 million per annum for a period of five years and nine months" as well as "GBP25 million in security over real estate assets reducing on a straight-line basis to GBP12 million from September 2024".
The pension scheme's trustees have confirmed that the acquisition will therefore not be detrimental to the security of its members' benefits.
Shares in RPC closed up 0.3% at 795.18 pence on Tuesday.
