Orora Australis – Amcor Completes Its Spinoff

Amcor’s (ASX:AMC) shareholders overwhelmingly approved the demerger of Orora (ASX:ORA), its Australasia and Packaging Distribution business, at a shareholder meeting last week with over 99% of the votes cast in favor. Shareholders will end up owning two distinct packaging companies with different focuses and end markets. While the board considered numerous options for the business, in the end they felt that the ‘advantages of the demerger outweigh the disadvantages and risks.’ For a lot more background information on the transaction, check out this company page and our earlier posts on the subject.

The demerger was effective on December 17th and Amcor shareholders will receive one share of Orora for every 1 share of Amcor owned. The new company started trading today on the ASX under the ticker ORA. While the shares closed up on the day, performance was muted by the disappointing listing of another packaging company, Pact Group Holdings (ASX:PGH), on the same day. While both Pact and Orora operate in the lower growth/lower margin segments of packaging, analysts are still positive on Orora and have a 12 month price target of A$1.40-1.75 per share.

Disclosure: Author holds no position in any stock mentioned.