The owner of Australian glass manufacturer Orora has rejected an ‘opportunistic’ acquisition offer from a financial group.
Orora Limited said the offer from Lone Star Fund XII Acquisitions to acquire 100% of Orora undervalued the packaging company.
As well as its glass manufacturing capability, Orora makes a variety of packaging options including cans, closures and caps, and boxes and cartons.
It has a glass plant in South Australia and recently acquired the French Saverglass group, with facilities in Europe and the Americas.
Lone Star is a $140bn fund and is believed to want to break up the Orora group and sell off the Australasian business.
Under its plan, called an Indicative Proposal, Orora shareholders would be entitled to receive $2.55 per share, less any dividends declared or payable.
Orora said: “Orora wishes to advise that it received and has rejected an opportunistic, conditional and non-binding indicative proposal from Lone Star Fund XII Acquisitions, LLC to acquire 100% of the issued shares of Orora.
"The board, together with its advisers, carefully considered the Indicative Proposal and determined that it is not in the best interests of its shareholders to further engage with Lone Star on the basis of the Indicative Proposal, which materially undervalues Orora.”
