Lone Star likely to bide its time over Orora

Orora is a packaging solutions business.

Orora’s share price decline this week has revived some debate as to whether it is back in the crosshairs of private equity suitor Lone Star Funds.

Shares closed at $2.25, but since Lone Star bid $2.55 per share for the business in August, the dollar has fallen from about 70c to the US dollar to about 60c.

Orora has also finalised the sale of its Packaging Solutions unit to Clayton, Dubilier & Rice’s Veritiv for $US2.2bn.

Weighing against the likelihood of interest by the US-based Lone Star is that trade tariffs introduced by the US and China make its future outlook uncertain, while its EUR 1.29bn Saverglass acquisition has failed to perform strongly to date.

There’s a view that Lone Star will wait for the dust to settle again before a second attempt to buy the business.

Amcor offloads assets

Amcor’s $13bn acquisition of Berry Global is due to close about mid-year but the process of ­selling off non-core assets has ­already begun.

It’s targeting cyclical, low-margin units offering services for industrials rather than the consumer products industry for its divestments.

Berry was already looking to sell some assets before it was bid for by Amcor.

Shareholders will vote on the transaction in about a month.

Likely to be involved in the asset sales will be investment banks UBS and Goldman Sachs.