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Big listing plans
Graeme Hart's packaging business Reynolds Group Holdings is getting ready for an initial public offer in spite of the global pandemic.
Filings to the US Securities and Exchange Commission on August 4 reveal the company has submitted a draft registration statement relating to the "proposed initial public offering of our common stock."
The company noted the number of shares to be offered and the price range for the proposed offering had yet to be determined with the IPO expected to start after the SEC completed it review process.
If it proceeds, the company would be converted into a Delaware Corporation and named Pactiv Evergreen.
Prior to the IPO the company plans to distribute to its shareholder, PFL, its Graham Packaging business.
Graham Packaging is a designer and manufacturer of customer blow moulded plastic containers. It has a large global customer base with its largest presence in North America.
The distribution would be the second it has made to its shareholder. On February 4 it also transferred its former Reynolds Consumer Products segment to its shareholder and subsequently floated it.
The remaining segments of the business set to be floated would be food service, food merchandising and Evergreen.
Financials show the Graham Packaging segment was the highest-earning segment for the three months to June 30.
It made US$104 million in earnings before interest, tax, depreciation and amortisation up from US$95m in the same quarter last year. While its food service division had ebitda of US$42m down from $107m after being hit hard by fallout from Covid-19.
It food merchandising segment was US$65m up from US$57m while the Evergreen segment was down at US$42 from US$52m.
Total revenue for the quarter was US$1.569 billion, down 13 per cent on the same period in 2019 while its gross profit was down 23 per cent to US$232m.
Reynolds Consumer Products has done well since its listing in February. It had a US26 per share offer price and was trading around US$32.74 on the Nasdaq on Thursday.
AMP New Zealand wealth chief executive Blair Vernon has been seconded into the role of acting head of AMP Australia after the sudden departure of its former executive Alex Wade.
ASX-listed AMP announced Wade would step down from his role last week, effective immediately. It did not give an explanation for Wade's departure, saying only that the business had accepted his resignation.
But Australian media have revealed Wade's departure was linked to allegations of poor conduct, including sending lewd photos to a woman.
The departure is the latest scandal to hit the financial services firm and comes after it was criticised for promoting Boe Pahari to lead the AMP Capital division. Pahari was financially penalised over a harassment incident several years ago.
Vernon's secondment is temporary and a spokesman confirmed he is doing the job from New Zealand. In the meantime, Jeff Ruscoe has been appointed acting chief executive of the New Zealand business.
Companies who received the employer wage subsidy are being urged to be cautious over the timing of dividend payments to shareholders.
The Government is in the process of auditing businesses that received the wage subsidy in a bid to weed out any fraudulent claims.
Accounting and advisory firm Deloitte recently released a note advising clients how to get their house in order should they be audited.
The firm noted a common question it was being asked was around the impact of a business paying dividends after they have made a claim on the scheme.
"While many other countries have introduced dividend restrictions on companies who have claimed Government Covid-19 subsidies (some countries banning dividends all together), MSD (Ministry of Social Development) have remained silent on the issue."
The firm noted the silence from MSD indicated there was no set answer as to whether a claim on the scheme was still valid if dividends were paid after a claim is made, or how soon is too soon to pay a dividend.
"This means that companies will have to self-assess to determine if the dividend declared is appropriate or not in the circumstances."
Publicly listed companies will have to be extra mindful of how soon they pay a dividend given the public nature of the payment and the wage subsidy searchable MSD list.