Wallpaper maker Papa John’s is reportedly facing a takeover bid from a rival paper company
The paper company that has dominated the business of paper and packaging in Australia has reportedly made an offer for Papa Johns, it has emerged.
Com.au can reveal that the two companies have teamed up to take over Papa John.
News Corp’s papers have struggled to generate strong profits over the past three years, while the paper giant has been on a rollercoaster ride, making a profit of just $12 million in 2016.
The deal is said to be worth up to $20 million.
It is understood that Papa John is also willing to pay more than $10 million for the paper company, which owns a controlling stake in the company.
The Australian Competition and Consumer Commission has confirmed that it has received the formal offer from Papa John, which was sent to the agency’s Competition Bureau.
The agency’s director-general, Michael Prahran, said he had spoken to the company’s senior executives and “they have expressed their interest”.
The Australian media have been critical of Papa John for a number of years, with the company facing a raft of consumer complaints about its packaging practices.
News of the bid has led to speculation that Papa Johns’ business has suffered, and that the company may have a tough time getting back into the top 100 of the market.
A recent survey conducted by the Australian Media Group found that the business was in poor financial shape, with nearly two-thirds of respondents saying they did not believe they had enough cash in the bank to keep going.
The company had a loss of $2.5 billion in 2017, down from a loss last year of $10.5 million.
News Media has also reported that the paper market is likely to fall by as much as 30 per cent, and has suggested that the newspaper industry as a whole could be on the verge of a “death spiral”.
In 2018, News Corp sold a controlling interest in the Wall Street Journal to a private equity firm for $4.5bn, while it is also expected to sell its newspapers in 2019.