Amcor sees fall in share price

Australian integrated packaging and paper company Amcor Ltd. eased off eight year highs on 13 May after the completion of the institutional component of a A$ 1.4 billion capital raising to help pay fo…

Australian integrated packaging and paper company Amcor Ltd. eased off eight year highs on 13 May after the completion of the institutional component of a A$ 1.4 billion capital raising to help pay for the acquisition of parts of Germany“s Schmalbach-Lubeca. On 10 May, Amcor shares surged A$ 1.08, or 14%, to close at A$ 8.76, just under their all-time peak of A$ 8.82, after being released from a two-day trading halt. Today, the stock shed seven cents to A$ 8.69 with 12.8 million shares changing hands, according to preliminary calculations. The capital raising was part of the funding packaging Amcor put together to buy the container lids and PET bottle businesses from Schmalbach-Lubeca, announced last week. The total amount raised was about A$ 835 million in the institutional component. The balance of the ordinary share entitlement offer will comprise a A$ 365 million retail offer of one ordinary share per six ordinary shares held, and one share for every 4.72 convertible notes, at A$ 7.40 per share. Any additional funds raised will be used to further strengthen the balance sheet.