Australia's Orora earnings will reduce from Saverglass buyout - Jefferies

Orora

05/09/2023 22:46

** Brokerage Jefferies cuts PT on Australia's Orora  ORA.AX 
to A$3.10 from A$3.85, warns company's offer to buy France-based
Saverglass will reduce earnings 
    ** Packaging company said it would buy French high-end glass
bottle manufacturer Saverglass from PE firm Carlyle Group  CG.O 
for A$2.16 billion ($1.38 billion) 
    ** We estimate that prima facie, the deal dilutes (Orora's)
underlying EPS, including synergies, by 2% - Jefferies
    ** Orora to raise A$1.35 billion to fund the acquisition 
    ** Funds will raised at an issue price of A$2.70 a share, a
21.3% discount to its last closing price on Aug. 25 
    ** Orora shares were placed on a trading halt on Aug. 28 and
later went into voluntary suspension as the company had to delay
an official buyout announcement.
    ** Brokerage maintains "hold" rating 
    ** 3 of 11 analysts rate the stock "buy" and 8 "hold"; their
median PT is A$3.75 – LSEG data
    ** Stock up 21.8% this year, as of last close

($1 = 1.5667 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com))