Home > Shareholders vote for Amcor demerger

Shareholders vote for Amcor demerger

Editorial
article image The packaging company will split.

Shareholders in multinational packaging firm Amcor have voted in favour of separating the packaging and distribution arm into a new company.

AAP reports that the vote was almost unanimous. 99.79 per cent of shareholders voted in favour of separating Amcor's old Australasia and Packaging Distribution business, which also used to be known as AAPD.

The new company will go by the name Orora and the demerger will become effective on December 17. The company will commence trading as a separate company on the Australian Securities Exchange on December 18.

Amcor chairman Chris Roberts conceded to shareholders on Monday that there were disadvantages associated with the demerger including reduced size and diversification of the businesses, one-off transaction and implementation costs and additional corporate and operating costs.

However, he maintained that the advantages outweighed those negatives.

"The Amcor board is of the view that the demerger will enhance shareholder value by enabling increased focus for each company to better pursue their own growth agenda and strategic priorities," Roberts said.

"The demerger recognises that while Orora and Amcor are both packaging companies, they are very different in terms of product segments and geographic focus."

Roberts will now leave the Amcor board and become chairman of Orora. Nigel Garrard, who was formerly president of AAPD, will be chief executive of Orara.

Last month, Amcor announced its acquisition of Detmold Flexibles, a privately-owned Australian flexible packaging business. 

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