Australia's Orora slumps on discounted capital raise to fund $1.4 bln Saverglass buyout

Orora

06/09/2023 01:51

** Shares of Orora Ltd  ORA.AX  fall as much as 15.8% to
A$2.770, their biggest intraday pct drop since Aug 15, 2019
    ** The Australian packaging co to acquire French high-end
glass bottle manufacturer Saverglass from private-equity firm
Carlyle Group  CG.O  for A$2.16 bln ($1.38 bln)
    ** Co to raise A$1.35 bln at an issue price of A$2.70 per
share to fund the purchase 
    ** Issue price is a 21.3% discount to stock's last closing
price on Aug. 25 taking into account 9 Australian cents per
share final dividend 
    ** Co's shares hit lowest level since Feb 15
    ** Trading in shares were suspended since Aug 30, but
resumed on Wednesday following completion of capital raising 
    ** About 5.9 mln shares change hands, compared with co's
30-day average trading volume of 2.2 mln shares 
    ** Orora shares up 21.8% YTD, as of last close 
   
   ($1 = 1.5691 Australian dollars)

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))