Pact Group Holdings Ltd (ASX: PGH) went into a trading halt as the packaging company hosted its AGM amid plans of acquisitions worth $176 million.
The company announced an agreement to acquire parts of the Asian packaging operations of Closure Systems International and Graham Packaging Company from Reynolds Packaging for $142 million in cash.
The move is part of Pact Group's plan to reinvent itself by generating a greater presence in Asian markets.
Pact Group's share price has been smashed this year, going from $7.38 in May to close on Wednesday at $5.81.
It hopes to turn things around by accelerating "growth in existing sectors through disciplined M&A".
The acquired businesses have seven manufacturing sites across China, South Korea, Nepal, India and the Philippines, according to Pact Group.
And the company said the move will "significantly complement and extend" Pact Group's existing geographical reach and customer footprint in Asia, increasing revenues from about $50 million to $200 million in the region.
The acquisitions, to be funded by a $176 million entitlement offer to shareholders, provided Pact Group Chairman Raphael Geminder with some extra optimism to offer shareholders on top of improved financials.
Pact generated sales revenue of $1.48 billion for financial year (FY) 2017, an increase of 7% on the previous year, according to the company.
The increased revenues were reflected in a boost to net profit after tax of $100 million, an improvement of about 6% on FY 2016, Mr Geminder announced at the AGM.
"Our strong financial performance has enabled us to increase returns to our shareholders, delivering total dividends of 23 cents per share, up 10% on the 2016 financial year," he said.
The company, with a market value of about $1.74 billion, is also expanding its footprint in Australia.
Pact Group entered an agreement to buy the West Australian tank and drum business ECP Industries for $11.7 million.
Pact Group shareholders haven't done as well over the past year as those with stakes in other packaging businesses Amcor Limited (ASX: AMC) and Orora Ltd (ASX: ORA).
But it seems as though things could change if all goes well in Asia.
