Business News

AMCOR INCREASES HOLDING IN AMVIG TO 39.3%

Wednesday 25. June 2008 - Amcor announces today that, subject to AMVIG Holdings Limited (AMVIG) shareholder approval, it is acquiring 78.3 million shares in the Hong Kong publiclylisted company AMVIG for a consideration of $HK700 million.

The shares acquired would be by way of a placement by AMVIG to Amcor at a price of HK$8.94 per share. The placement price represents a premium of 5% over the weighted average AMVIG share price for the nine trading days prior to 20 June 2008. As a result of this placement and following the completion of the proposed acquisition recently announced by AMVIG, Amcor’s shareholding in AMVIG would increase from 35.4% to 39.3%.
AMVIG has a strategy of leading the consolidation of the tobacco packaging market in China and the funds raised from this share placement will be used to further advance that strategy.
Amcor’s CEO and Managing Director, Ken MacKenzie said: “AMVIG continues to deliver strong growth and the company’s strategy of further consolidating the tobacco packaging industry in China should ensure this growth continues.
“Amcor is committed to being a substantial shareholder in AMVIG and the opportunity to subscribe for new shares has enabled us to increase our ownership to around 40%.
“This investment of HK$700 million is consistent with our stated strategy of targeting growth in tobacco packaging in emerging markets.”