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Amcor Limited (ASX:AMC) is an international integrated packaging company offering packaging and related services. The company majorly is into the production of a variety of packaging products which include boxes, cartons, aluminium foils and steel cans, plastic packaging, plastic bottles and jars, as well as the multi-wall sacks.
The company, today on 13 March 2019, has come up with an update that significant development has been made for reaching a conclusion towards an all-stock transaction. This has been made very clear from the recent filing of documentation concerning shareholders and finalisation of boardâs as well as the senior leadership appointments.Â
As per the key terms, all stock purchases of Bemisâs shares shall be made at a fixed exchange ratio of 5.1 shares for each existing share of the company. Amcor and Bemis's shareholders are anticipated to own roughly 71 per cent and 29 percent, respectively, of the newly formed company. The closing of the subject transaction is subject to the satisfaction of certain conditions. These conditions include both companyâs shareholder approval and other remaining regulatory approvals. The merger of both the companies will give birth to a newly created holding company (âAmcor plcâ), which would be incorporated in Jersey, with an expected tax domicile in the UK.
Amcor Shares will not be traded on the ASX following the closing of the transaction, but interests in New Amcor Shares will be quoted and traded on the financial market operated by ASX in the form of CDIs under the ASX ticker symbol ââAMC.ââ
Both the companyâs management has a belief that substantial value is anticipated to be formed for shareholders through the delivery of USD 180 million cost synergies, and a stronger financial profile going forward, including higher margins and cash flow and the potential for even stronger growth.
Amcor and Bemis will incur significant costs in connection with the transaction, regardless of whether the transaction is completed, and these transaction fees and costs may be greater than anticipated.
However, the merger of the two complementary companies offers a transformational and exclusive chance to form the global leader in consumer packaging space, with the footprint, scale and capabilities to deliver a very good value for its customers and employees. The combination has been in one voice recommended by the board of both companies.
On the price-performance front, the stock has posted the YTD return of 12.21%. The company also has posted returns of 5.75%, 11.70% & 1.78% over the past six, three & one-month period respectively. At the time of writing (13 March 2019, AEST 04:00 PM), the stock of the company is trading at a price of $14.80, down 0.604% during the dayâs trade with a market capitalisation of ~$ 17.24 Bn. The stock opened the day at $ 14.860, reached the dayâs high of $ 14.920 and touched the dayâs low of $ 14.750, with an average daily volume of ~ 2,937,477. It had a 52-week high price of $ 15.370 and a 52 weeks low price of $ 12.665, with an average volume of, 3,480,659 approximately.
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