UK's Essentra up on sale of its packaging unit for $328 mln

Mayr-Melnhof Karton AG

24/06/2022 09:52

** Shares of plastic and packaging component supplier
Essentra  ESNT.L  up as much as 3.5% at 282p
    ** Co sells its packaging unit to an Austria-based carton
producer Mayr-Melnhof Group for 312 million pounds ($382.29 mln)
    ** ESNT had started a review of its packaging division in
November last year, in order to focus more on its industrial
component-making business  urn:newsml:reuters.com:*:nL4N2SH1YF
    ** Co says it will use the proceeds to strengthen its
balance sheet and make a small contribution to co's pension
schemes
    ** Jefferies says ESNT and investors will benefit from the
greater clarity the deal will give, but says the transaction
value is lower than expected 
    ** "Consideration is a touch lighter than we would have
hoped for" - Jefferies 
    ** Including session's gains stock down ~21% YTD



($1 = 0.8161 pounds)

 (Reporting by Sinchita Mitra in Bengaluru)
 ((Sinchita.mitra@thomsonreuters.com))