Pacific Current Group Limited Strategic Review
River Capital notes Pacific Current Group's (PAC) announcement dated 13 November 2023 regarding its Strategic Review and wishes to clarify several misconceptions within.
River has consistently held the view that the intrinsic value of PAC significantly exceeds the fair value adjusted NAV published by the Directors of the Company. This is the reason for River being PAC’s largest shareholder and has been clearly communicated to both PAC and its Independent Board Committee.
However, to address the desire of some shareholders to seek liquidity, River entered into good faith discussions with various parties that aimed to accommodate a transaction that both;
i. provided a liquidity option to shareholders that wished to exit, even if it was at a value below River’s assessed intrinsic value; and
ii. allowed River to retain an equivalent interest in PAC or its underlying assets.
River has made clear in those discussions that it would support transactions on certain terms at $11 per share. Any such transactions would have been subject to a scheme of arrangement and a vote of all shareholders excluding River. Unfortunately, no such transaction was agreed between the parties after extensive good faith discussions by River. Accordingly, River has ceased such discussions.
River encourages the Directors of PAC to either obtain an offer for all PAC shareholders, at or above PAC’s published fair value NAV; or in the absence of such an offer, focus on delivering value from its existing assets, including reducing costs, and distributing all PAC’s growing cashflows to shareholders.
In light of the Strategic Review, any initiatives to deliver shareholder value should include engagement and consultation with PAC’s major shareholders.
Authorised for lodgement by:
River Capital Investment Committee
