Orora (ASX:ORA) is selling its Australasian Fibre Business to a wholly owned subsidiary of Nippon Paper Industries Co.
They have entered into a binding agreement for an enterprise value of $1.7 billion.
The estimated net gain after costs and tax is $225 million, which will be recognised as a Significant Item.
The Orora Group will retain the market leading Beverage business, which manufactures 65 per cent of Australia’s wine bottles.
Shares in Orora (ASX:ORA) are trading 17.22 per cent higher at $3.20.