Amcor aims to use the package to fund a large chunk of the proposed purchase of Rio Tinto’s Alcan packaging business. The company and its advisers are closely scrutinising offers from lenders.
Sources say Amcor wants to have the debt funding in place so it can proceed to an equity raising when negotiations on the Alcan purchase are finalised.
While Amcor won’t comment on its intentions it did confirm on Friday that it was considering all of its funding options and was talking to Rio about the potential acquisition of part but not all of Alcan’s packaging business.
Julie Mcpherson, Amcor company secretary responded to a price query from the Australian Securities exchange on why Amcor’s share price had risen from $4.67 to $5.21 in two days last week.
MePherson says, “As part of Amcor’s process of reviewing growth opportunities, Amcor is currently in discussions with Rio Tinto. Those discussions continue to be incomplete in nature and there can be no assurance that any binding proposal or transaction will result from those discussions.”
She continues, “As part of Amcor’s consideration of this potential transaction, it is considering all its funding options.”
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