Amcor has moved closer to finalising its drawn-out takeover of US packing giant, Bemis with the release of shareholder documentation on the takeover, including board and management appointments.
These were filed with US and Australian regulators yesterday and shareholder meetings are scheduled for May 2 and Amcor now expects to complete the multi-billion dollar deal on May 15.
The new board will have eight Amcor-appointed directors and three Bemis-appointed directors – Arun Nayar, David Szczupack, and Philip Weaver.
However, Bemis’ chief executive Bill Austen and chief financial officer Mike Clauer will leave the company as their Amcor counterparts take control.
That is understandable given that Amcor and Bemis shareholders are expected to own approximately 71% and 29%, respectively, of the combined company.
Amcor CEO Ron Delia said in a statement yesterday that “Since announcing this transaction, we have made significant progress towards closure, and further important steps have been taken today with the finalisation of Board of Director and Senior Leadership appointments as well as shareholder documentation filings.
“As we approach the closing of the transaction, the opportunities to further strengthen our industry-leading value proposition for customers, employees and the environment and to create value for shareholders are even clearer.”
Amcor said that “Substantial value is expected to be created for shareholders through the delivery of USD 180 million in pre-tax annual net cost synergies, and a stronger financial profile going forward, including higher margins and cash flow and the potential for even stronger growth.”
“Amcor intends to maintain a competitive, progressive dividend which is expected to increase over time and will have a strong investment grade balance sheet with immediate capacity for further investment or share buy backs,” directors said yesterday.
Amcor will be listed on both the NYSE and the ASX.
Amcor shares eased 0.6% to $14.80.