The company will sell its Australasian fibre business to Nippon Paper for $1.72bn. The transaction represents an FY19 adjusted operating earnings (EBITDA) multiple of 11.5x.
Subsequently, Orora intends to return $1.2bn to shareholders through capital management initiatives with further details in due course. The AGM is on October 15. Macquarie cannot provide a rating or target at present.
Sector: Materials.
Current Price is $3.04. Target price not assessed.
