Orora shares soar on rejected Lone Star takeover
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More news: Orora was the best performing stock across the ASX 200 in morning trade after the packaging group rejected a $3.3 billion takeover bid from Lone Star Fund XII Acquisitions.
Shares were up 19.1% to $2.27 by 11:50am AEST, having sunk more than 30% in the last 12 months.
Orora rejects 'opportunistic’ $3.3b takeover bid
The news: Packaging giant Orora says it has rejected an ‘opportunistic’ takeover bid from Lone Star Fund XII Acquisitions.
The numbers: Under Lone Star’s indicative proposal, shareholders would receive $2.55 in cash less any dividends declared or payable, the company said, valuing the business at roughly $3.3 billion.
Orora shares last closed at $1.91 each, and are down nearly 27% so far this year, weighed down by an earnings downgrade in April.
The context: Orora said its board and their advisors had carefully considered Lone Star’s proposal and determined that it was "not in the best interests" of shareholders because the bid materially undervalued Orora.
The company will release its FY24 results next week and will share an update on the progress it is making against its strategy.
The group downgraded its full-year earnings expectations in April citing softer demand and volumes across its business, just months after acquiring French premium bottle maker Saverglass for $2.26 billion with the aim of making it the centrepiece of its global glass business unit.
The source: ASX announcement
