Orora Rejects Lone Stars Takeover Bid, Calling It Opportunistic

Highlights:

• Orora Rejects Takeover Bid: Orora Limited (ASX: ORA) declined a AU$2.55 per share takeover offer from Lone Star, labeling it as “opportunistic” and undervaluing the company.
• Board’s Firm Decision: After careful consideration with advisers, Orora’s board determined that the proposal was not in the best interests of shareholders and decided against further engagement.
• Focus on Shareholder Value: Orora’s rejection emphasizes its commitment to protecting shareholder value and confidence in its long-term growth strategy.

Board Asserts Offer Undervalues the Company

Orora Limited (ASX: ORA) has decisively rejected a takeover bid from Lone Star, deeming the proposal as “opportunistic” and asserting that it significantly undervalues the company. The bid, reported by The Australian Financial Review’s Street Talk column, offered AU$2.55 per share for Orora.

Board’s Firm Stance

In a statement, Orora’s board, in consultation with its advisers, stated that after a thorough evaluation, they concluded that the proposal was not in the best interests of shareholders. “The board, together with its advisers, carefully considered the indicative proposal and determined that it is not in the best interests of its shareholders to further engage with Lone Star on the basis of the indicative proposal, which materially undervalues Orora,” the company explained.

Shareholder Interests at the Forefront

The board’s rejection underscores its commitment to safeguarding shareholder value, emphasizing that the offer does not reflect Orora’s true potential and market position. This decisive response signals the company’s confidence in its strategic direction and long-term growth prospects.

Lone Star’s Strategic Move

Lone Star’s approach appears to be part of a broader strategy to capitalize on what it perceives as undervalued assets in the market. However, Orora’s swift dismissal of the offer suggests that the company is resolute in maintaining its independence and pursuing its own growth agenda.

What’s Next for Orora?

As Orora continues to focus on its growth strategy, the company’s management and board are likely to remain vigilant against any further unsolicited bids. The rejection of Lone Star’s offer highlights Orora’s determination to ensure any potential deals align with the long-term interests of its shareholders. With this firm stance, Orora reaffirms its commitment to driving value and growth, while maintaining control over its future direction.

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