Orora Limited · ASX:ORA
Orora — Merger or Acquisition (October 2019)
9 slides from Orora's merger presentation, Oct 10, 2019
Slide 1: Orora announces sale of Australasian Fibre Business
Orora announces sale of Australasian Fibre Business 10 October 2019
Slide 2: Transaction summary
Transaction summary Orora announces the sale of its Australasian Fibre business for A$1,720 million to Nippon Paper Industries Co., Limited Gross and net proceeds • Enterprise value - A$1,720 million Net gain on disposal • Net proceeds after tax and costs ~ A$1,550 million • Estimated net gain on sa
Slide 3: Key Transaction Details
Key Transaction Details Binding agreement to sell the Australasian Fibre Business subject to customary conditions • Orora has entered into a binding agreement to sell its Australasian Fibre Business to Nippon Paper • Following the offer from Nippon Paper, the Orora Board concluded that the sale was
Slide 4: Strategic Rationale
Strategic Rationale Transaction with Nippon Paper delivers compelling value for Orora shareholders • A$1,720 million enterprise value represents an EV / FY19 adjusted EBITDA multiple of ~11.5x and EV / FY19 adjusted EBIT multiple of ~18.9x • Implied transaction multiple represents a premium to Orora
Slide 5: The Australasian Fibre Business is a mature player
The Australasian Fibre Business is a mature player Orora is divesting a mature, market leading business operating across multiple end markets The Australasian Fibre Business has operations covering: Key statutory numbers: • Cardboard recycling and the manufacture of recycled • FY19 revenue of A$1.4
Slide 6: Orora following the transaction
Orora following the transaction Orora generated sales revenue of ~A$3.4 billion and EBITDA of ~A$350(1) million from the Australasian Beverage and North American Businesses in FY19 Two market leading businesses with attractive growth outlooks and strong financial profiles • Leading supplier of alumi
Slide 7: Capital Management
Capital Management Following completion of the transaction, Orora intends to return the majority of the net proceeds of the transaction to shareholders The Orora Way is designed to unite team • Orora expects to receive ~A$1,550 million of net cash proceeds from the transaction, after taxes, transact
Slide 8: Timing
Timing The Orora Way is designed to unite team members and embed a • The transaction is subject to customary conditions for a transaction of this nature, of shared understanding Completion including regulatory approvals and the Company’s purpose, approvals • The transaction is expected to complete i
Slide 9: Slide 9