Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Nippon Paint Holdings Co., Ltd.    4612   JP3749400002

NIPPON PAINT HOLDINGS CO., LTD.

(4612)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Australia's Orora to sell fibre arm for $1.2 billion, with big return for shareholders

share with twitter share with LinkedIn share with facebook
share via e-mail
10/09/2019 | 10:46pm EDT

(Reuters) - Australian packaging maker Orora Ltd said Thursday it will sell its local fibre materials business to Japan's Nippon Paper Industries for A$1.72 billion ($1.15 billion), simplifying its operations and sending its shares up 20%.

The deal is the latest in a crop of Japanese buyouts of Australian companies which includes Japan's Nippon Paint's takeover of the country's best known paint firm, DuluxGroup, for A$3.8 billion earlier this year.

The sale would be the third-largest Australian acquisition by a Japanese company this year, according to Refinitiv data.

Orora, which plans to return the bulk of the funds from the sale to shareholders, said it would focus on its higher growth Australasian glass and aluminium beverage and North American businesses.

"(The sale) fully values the fibre business and provides a streamlined opportunity for the Orora business going forward," Chief Executive Brian Lowe told a media call.

Shares of Orora surged as much as 20.2% and were set for their strongest one-day percentage gain since the stock's debut in 2013.

The deal highlighted renewed interest in businesses such as cardboard, which is now widely used by delivery services such as Amazon to transport product, and allowed Nippon to take advantage of a weak Australian dollar, said James McGlew, executive director of corporate stockbroking at Argonaut.

"With the Australian dollar at low levels at the moment, it means they're getting bigger bang for their yen out of acquisitions in Australia," McGlew said.

Australian Paper, a wholly owned unit of Nippon Paper, welcomed the sale.

"(The deal) will allow us to expand into new sectors such as box and carton manufacture along with paper bags and sacks ... bringing us closer to end markets," Peter Williams, chief operating officer of Australian Paper, said in a statement.

Orora said it expects a net gain of about A$225 million from the deal, which is set to close in early 2020, pending regulatory approval in Australia and New Zealand.

The sale will make net cash proceeds of about A$1.55 billion from an enterprise value of A$1.72 billion and Orora intends to return about A$1.20 billion of that to shareholders through capital management initiatives.

Orora also flagged some job cuts, saying there may be some reduction in roles going forward.

($1 = 1.4892 Australian dollars)

(Reporting by Ambar Warrick and Devika Syamnath in Bengaluru, editing by Richard Pullin)

By Devika Syamnath and Ambar Warrick

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) -0.15% 0.90827 Delayed Quote.0.62%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) -0.28% 71.08 Delayed Quote.-6.32%
AUSTRALIAN DOLLAR / NEW ZEALAND DOLLAR (AUD/NZD) -0.23% 1.06694 Delayed Quote.2.78%
AUSTRALIAN DOLLAR / SWISS FRANC (AUD/CHF) -0.22% 0.63864 Delayed Quote.-5.37%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.30% 0.65946 Delayed Quote.-5.29%
BOOHOO GROUP PLC -0.59% 334.9 Delayed Quote.12.42%
BOX, INC. 0.61% 19.64 Delayed Quote.17.04%
BRITISH POUND / AUSTRALIAN DOLLAR (GBP/AUD) 0.24% 1.85748 Delayed Quote.-1.84%
DULUXGROUP LIMITED 0.00%End-of-day quote.0.00%
EURO / AUSTRALIAN DOLLAR (EUR/AUD) 0.22% 1.66914 Delayed Quote.3.40%
NIPPON PAINT HOLDINGS CO., LTD. -8.31% 7500 End-of-day quote.32.98%
NIPPON PAPER INDUSTRIES CO., LTD. 1.65% 1605 End-of-day quote.-13.15%
ORORA LIMITED 1.60% 2.54 End-of-day quote.-20.13%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on NIPPON PAINT HOLDINGS CO.,
05/12NIPPON PAINT HOLDINGS CO., LTD. : quaterly earnings release
04/27NIPPON PAINT : Popular Buriram Massage Studio Undergoes Professional Remodelling..
AQ
02/10NIPPON PAINT HOLDINGS CO., LTD. : annual earnings release
2019NIPPON PAINT HOLDINGS CO LTD : Ex-dividend day for final dividend
FA
2019NIPPON PAINT : First Recipient of Nippon Paint's Gennosuke Obata Fellowship Fund..
AQ
2019Australia's Orora to sell fibre arm for $1.2 billion, with big return for sha..
RE
2019NIPPON PAINT : Dunn-Edwards Paints Names ‘Minty Fresh' Color of the Year f..
BU
2019WARREN BUFFETT : Buyout firm CD&R pursues bid with PPG for Buffett-backed Axalta..
RE
2019WALL PUTTY MARKET TO WITNESS HUGE GR : Top Players J.K. Cement, Meichao, Birla, ..
AQ
2019NIPPON PAINT HOLDINGS CO LTD : Ex-dividend day for interim dividend
FA
More news
Financials (JPY)
Sales 2020 659 B
EBIT 2020 83 900 M
Net income 2020 38 467 M
Debt 2020 240 B
Yield 2020 0,60%
P/E ratio 2020 64,4x
P/E ratio 2021 42,6x
EV / Sales2020 4,02x
EV / Sales2021 3,35x
Capitalization 2 406 B
Chart NIPPON PAINT HOLDINGS CO., LTD.
Duration : Period :
Nippon Paint Holdings Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends NIPPON PAINT HOLDINGS CO.,
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 7
Average target price 5 721,43 JPY
Last Close Price 7 500,00 JPY
Spread / Highest target 20,0%
Spread / Average Target -23,7%
Spread / Lowest Target -56,7%
EPS Revisions
Managers
NameTitle
Tetsushi Tado President, CEO & Representative Director
Masaaki Tanaka Chairman, President & Chief Executive Officer
Yusaku Obata Executive Officer, GM-Research & Development
Manabu Minami Director
Seiichiro Shirata Director & Managing Executive Officer
Sector and Competitors
1st jan.Capitalization (M$)
NIPPON PAINT HOLDINGS CO., LTD.32.98%22 320
THE SHERWIN-WILLIAMS COMPANY-0.07%48 174
PPG INDUSTRIES, INC.-27.95%23 592
ASIAN PAINTS-9.27%20 710
AKZO NOBEL N.V.-18.25%15 534
RPM INTERNATIONAL INC.-9.09%9 272