Sale of investment in AMVIG Holdings Limited

Rhea-AI Summary

Amcor plc (NYSE: AMCR) has finalized an agreement to sell its 47.6% stake in AMVIG Holdings Limited for US$124 million. The sale is anticipated to close shortly and will impact Amcor's financials positively with a US$12 million contribution to Adjusted EBIT and US$10 million in operational cash flow from AMVIG's dividends for the fiscal year ending June 30, 2020. This strategic divestment positions Amcor for improved focus on its core packaging business and the potential for reinvestment in growth opportunities.

Positive

• Sale of 47.6% stake in AMVIG for US$124 million enhances cash position.
• Expected US$12 million contribution to Adjusted EBIT from AMVIG.
• Provides US$10 million in operational cash flow from dividends.

Negative

• None.

ZURICH, Sept. 24, 2020 /PRNewswire/ -- Amcor plc (NYSE: AMCR; ASX: AMC) today announced it has entered into a binding agreement with New Prospect Capital for the sale of its 47.6% equity accounted investment in AMVIG Holdings Limited (AMVIG) for cash consideration of US$124 million. AMVIG is listed on the Hong Kong Stock Exchange and the transaction, by way of share sale is expected to close in the coming days.

For the year ended 30 June 2020, Adjusted EBIT for the Amcor Group included a US$12 million contribution from the investment in AMVIG and cash flow from operations included US$10 million related to the receipt of annual dividends. 

For further information please contact:

Investors: Tracey Whitehead Head of Investor Relations Amcor +61 3 9226 9028 tracey.whitehead@amcor.com	Damien Bird Vice President Investor Relations Amcor +61 3 9226 9070 damien.bird@amcor.com
Media – Europe Ernesto Duran Head of Global Communications Amcor +41 78 698 69 40 ernesto.duran@amcor.com	Media – Australia James Strong Citadel-MAGNUS +61 448 881 174 jstrong@citadelmagnus.com	Media – North America Daniel Yunger KekstCNC +1 212 521 4879 daniel.yunger@kekstcnc.com

About Amcor
Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home- and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve value chains through a range of flexible and rigid packaging, specialty cartons, closures, and services. The company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and made using a rising amount of recycled content. Around 47,000 Amcor people generate US$12.5 billion in sales from operations that span about 230 locations in 40-plus countries. NYSE: AMCR; ASX: AMC

www.amcor.com  I  LinkedIn  I  Facebook  I  Twitter  I  YouTube

View original content:http://www.prnewswire.com/news-releases/sale-of-investment-in-amvig-holdings-limited-301137602.html

SOURCE Amcor

FAQ

What stake did Amcor sell in AMVIG Holdings?

Amcor sold its 47.6% stake in AMVIG Holdings Limited.

How much did Amcor receive from the sale of AMVIG?

Amcor received US$124 million from the sale of its stake in AMVIG.

What was the contribution of AMVIG to Amcor's Adjusted EBIT?

AMVIG contributed US$12 million to Amcor's Adjusted EBIT for the year ended June 30, 2020.

When is the sale of AMVIG expected to close?

The sale of AMVIG is expected to close in the coming days.