Australia's Orora to sell fibre business for $1.2 bln; return most proceeds to shareholders (updated)

Nippon Paper Industries

09/10/2019 23:43

(Adds details on deal)
    Oct 10 (Reuters) - Packaging company Orora Ltd  ORA.AX  on
Thursday said it will sell its Australasian fibre business to
Nippon Paper Industries  3863.T  and return the bulk of the
proceeds to shareholders.
    Orora said it had entered a binding agreement to sell the
business for an enterprise value of A$1.72 billion ($1.16
billion). It expects net cash proceeds of about A$1.55 billion.
    Of this, it intends to return about A$1.20 billion to
shareholders through capital management initiatives. 
    "As a more streamlined group of businesses, there may be
some reduction in roles required to support the Orora Group
activities going forward," Managing Director and Chief Executive
Brian Lowe said in a statement. 
    The company expects a net gain of about A$225 million from
the deal, which is expected to close in early 2020.
    Orora said that following the sale, it will focus on its
Australasian beverage and North American businesses. 
    Nippon Paper could not be immediately reached for comment
outside of working hours. 

($1 = 1.4868 Australian dollars)

 (Reporting by Ambar Warrick in Bengaluru, editing by Richard
Pullin)
 ((Ambar.Warrick@thomsonreuters.com; +91-80-6749-6625; Reuters
Messaging: ambar.warrick.thomsonreuters.com@reuters.net))