Orora to raise $2 billion in equity, debt for Saverglass acquisition

The news: Shares in Orora are in a trading halt as the packaging giant makes an equity raising to fund the acquisition of European glass bottle maker Saverglass.

The numbers: Orora will buy Saverglass, which makes bottles for the premium and ultra-premium wines & spirits market, for $2.26 billion. It will fund the acquisition by way of a fully underwritten $1.34 billion equity raising, consisting of a $450 million institutional placement and $895 million rights entitlement offer. It will also raise $875 million via debt funding.

The context: Orora said Saverglass will provide meaningful scale to its existing operations and extend its operating footprint in attractive offshore markets. Saverglass will become the centrepiece of Orora’s global glass business unit and operate as a third platform for growth. It expects the acquisition to be completed in the last quarter of 2023.