Demerger Plan Approve By Amcor shareholders

Demerger Plan Approve By Amcor shareholdersAmcor, multinational packaging firm shareholders approved of a demerger which will separate its packaging distribution business to form a new company, Orora, only after the group said the positives outweigh the disadvantages. The demerger comes to effect from December 17, with Orora to start trading as a separate company on the Australian Securities Exchange the following day.

Some 99.79 per cent of votes were in favour of hiving off Amcor's old Australasia and Packaging Distribution business, formerly also known as AAPD.

Chris Roberts, the chairman said ahead of a shareholder vote at the scheme meeting that there was more upside than downside to the demerger.

On Monday, he told the share holders, "The disadvantages of the demerger include reduced size and diversification of the businesses, one-off transaction and implementation costs and additional corporate and operating costs."

"The board considers that the advantages of the demerger outweigh the disadvantages and risks." He added.

The demerger becomes effective on December 17, with Orora to start trading as a separate company on the Australian Securities Exchange the following day.

Mr Roberts will leave the Amcor board to take up chairmanship of Orora while AAPD's outgoing president Nigel Garrard would become chief executive of the new company.

At 1237 AEDT, Amcor shares were 4.5 cents, or 0.41 per cent, higher at $11.085.

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