- Packaging company Orora (ORA) has successfully sold its Australasian Fibre Business to Nippon Paper Industries in a deal valued at $1.7 billion before tax
- By selling the fibre business, the company hopes to refocus on its beverage and packaging businesses in Australia and the U.S.
- The company currently produces bottles, boxes, cartons and aluminium cans, as well as more general packing products
- With the sale now complete, Orora is assessing capital management initiatives
- The company plans to provide details on how it’s handling the cash and seek shareholder approval for the deal in the coming weeks
- Orora shares have lost 2.72 per cent of their value at market open, trading for $2.50 per share
Packaging company Orora (ORA) has successfully sold its Australasian Fibre Business to Nippon Paper Industries in a deal valued at $1.7 billion before tax.
The deal’s finalisation comes on the heels of Foreign Investment Review Board approval earlier this year. The governmental body found no objection to the sale and the deal has since progressed on schedule.
The deal was originally announced in October last year. By selling the fibre business, the company hopes to refocus on the beverage and packing sectors in Australia and the U.S. The company currently produces bottles, boxes, cartons and aluminium cans, as well as more general packing products.
Orora operates production facilities and offices in seven countries and currently employees more than 4000 staff.
Regarding the proceeds of the sale, the company has stated it is assessing capital management initiatives. It will provide those details and seek shareholder approval in the next few weeks.
Managing Director and CEO of Orora, Brian Lowe believes the sale marks a new era for the company.
“Today, we farewell our Fibre Australasia colleagues and thank them for their contribution to Orora. We wish our colleagues and Nippon Paper well for their future,” Brian stated.
“Looking ahead, Orora has commenced a review of the strategy for the continuing businesses, including assessing competitive advantage in key market segments and identifying growth options to leverage our existing core strengths,” he said.
Brian went on to say that, with the sale now completed, the company is reassessing its strategic plan moving forward and will update shareholders later in the year.
Orora shares have lost 2.72 per cent of their value at market open, trading for $2.50 per share at 10:42 am AEST.