Orora outlines $320m buyback after sale of North American unit
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The news: Packaging giant Orora has outlined a share buyback of up to 10% of its shares after completing the sale of its North American packaging solutions business to private equity-backed rival Veritev.
The numbers: The company said an initial share buyback of up to $320 million (equal to 10% of its shares on issue) will start by 24 December.
The capital management initiative comes after it completed the sale of its Orora Packaging Solutions (OPS) business for $1.78 billion on a cash and debt-free basis, resulting in net cash proceeds of $1.7 billion.
The context: Managing director Brian Lowe said Orora had a strong balance sheet following the transaction, and would initially focus on the repayment of debt facilities.
The OPS sale followed a strategic review of the North American business and transforms Orora into a focused beverage packaging business. The company will invest part of the proceeds to expand cans capacity at its Rocklea facility in Queensland.
What they said: “Capital management initiatives will include a share buyback as announced on 10 December and investment in strategically aligned projects that will grow the business and deliver value for our shareholders,” Lowe said.
The source: ASX announcement
