Amcor Sticks with Vision in China Plant Transfer

Source from:  Dec 28 11:10 AAP  12/28/2005

Global packager Amcor said it will sell its two China tobacco packaging operations to its Hong Kong partner for about $102 million in stock, as part of a plan to consolidate its operations in China. Amcor will own about 44 per cent of Hong Kong-based Vision Grande Group Holdings when the transaction is complete, the company said in a statement to the Australian Stock Exchange on Wednesday. Amcor managing director Ken MacKenzie said his company had a strategic objective to increase its exposure to the Chinese tobacco packaging market. "The current plans to increase ownership and inject our Chinese tobacco operations into Vision Grande will cement our relationship and give a solid platform for further growth in this rapidly consolidating industry," Mr MacKenzie said. Under the deal, Vision Grande will transfer 121.1 million of its shares to Amcor. The shares are valued at $HK509 million ($90.55 million) on an assumed share price for the issued shares of $HK4.20 per share. The Hong Kong company also agreed to issue 16.67 million new shares to Amcor at a subscription price of $HK4.20 per share. After completion of the transactions, Amcor will have the right to appoint the chairman and a majority of directors to the board of the Hong Kong company. Enditem