Baker McKenzie has successfully acted for its client, Orora Limited (ASX: ORA), in entering into a binding agreement to sell its Australasian Fiber Business to a wholly owned subsidiary of Nippon Paper Industries Co., Limited (Nippon Paper) for an enterprise value of AUD 1.72 billion.
Baker McKenzie's (Melbourne-based) lead partner on this transaction, Peter Ickeringill stated: "The sale of Orora's Australasian Fiber Business offers compelling value to shareholders. Once the transaction is completed, our client’s intention is to return capital to its shareholders and to focus on its growing Australasian beverage and North American businesses."
When asked about the scale and complexity of the transaction, Peter remarked: "The size of this cross-border transaction required a committed team drawing from lawyers in our Melbourne, Sydney and Tokyo offices, and from lawyers in Auckland, on a range of multidisciplinary aspects. Customarily, the transaction is now subject to conditions, including Foreign Investment Review Board approval, with an expected completion date in early 2020."
Orora Limited established a strong and mature fiber packaging business in Australia and New Zealand through a comprehensive business model combining a wastepaper collecting system with cutting-edge corrugated base recycled paper manufacturing, highly automated cardboard production and the provision of fiber packaging-related materials and associated services. Nippon Paper is now well placed to deliver its own synergies to the business.
Through the acquisition of the business, Nippon Paper will be entering the integrated corrugated paperboard manufacturing business in the Oceania region.
Nippon Paper Group is a leading, diversified international timber, pulp, paper, paperboard packaging and chemicals business with operations in Asia, Oceania, North and South America and Europe. Headquartered in Tokyo, Japan, Nippon Paper was founded in 1949 and is listed on the Tokyo Stock Exchange with net sales of approximately AUD 15 billion. Nippon Paper Group is committed to global expansion through its key growth areas of packaging, household paper and healthcare, chemicals, energy, and wood products. The purchase of Orora's Australasian Fiber Packaging business will be the group's largest investment outside Japan.
Baker McKenzie is supported by and enjoys a long and strong relationship with Orora Limited and looks forward to continuing to partner with Orora in the future.
Peter was assisted by a Baker McKenzie team comprised of Chris Taylor, Sarah Roughead, Richard Lustig, Steph Szkilnik, Kyle Fong, Georgina Foster, Meredith Gibbs, Sean Selleck, Sinan Alnajjar, Dora Stilianos, Kurt Fisher and Tetsuo Tsujimoto.