Lone Star Americas Acquisitions, Inc. has tapped investment bank Macquarie Capital for its $3.4 billion buyout proposal for Orora Limited (ASX:ORA). Orora, which had a $2.6 billion market value at close of trade on August 12, 2024 when its share price was $1.91, has rejected the $2.55-a-share offer. "The board, together with its advisers, carefully considered the indicative proposal and determined that it is not in the best interest of its shareholders to further engage with Lone Star on the basis of the indicative proposal, which materially undervalues Orora," it said.
The UBS-advised company has moved forward the delivery of its result for the year to June 30 by one day to August 14, when it plans to share progress on its strategy. Investors are bracing for bad news linked to weaker glass demand, with a destocking in the global spirit market and a US market downturn amid rising inflation. However, it went on to bid for the Australian arm of building materials company Jeld-Wen, which was sold to Platinum Equity for $688 million.
A year before its office opened, it bid for GE Capital's Australian-based loans, but missed out on the $2 billion portfolio to Sankaty Advisors, which is now called Bain Capital Credit.