Rexam completes disposal of loss-making division
Consumer packaging giant Rexam has completed the disposal of its Personal Care division, selling off the final part of the loss-making unit.
Consumer packaging giant Rexam has completed the disposal of its Personal Care division, selling off the final part of the loss-making unit.
The company, which proposed to sell the division back in July in two parts, has now received the approval from Chinese authorities for the sale of its Cosmetics, Toiletries and Household care products business to Sun European Partners for $459m in cash.
Following the other sale of its High Barrier Foods business in August, the whole Personal Care division has now been offloaded for a total of $709m (£439m).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
First-half statutory pre-tax profits at Rexam fell from £192m to £166m as Personal Care put a £171m dent in the bottom line.
As part of its initial sale proposal, Rexam said that it would return around £370m to shareholders following the completion of the disposal.
"Rexam anticipates that on or aboutJanuary 8th 2013 it will post a circular to shareholders regarding the proposed return of cash by way of a B share scheme and also a share capital consolidation," the company said.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
How to invest in nuclear power
We need nuclear power to go green, says Dominic Frisby. But there is a better option than huge power stations
By Dominic Frisby Published
-
Chase slashes its easy-access savings rate – is it time to switch?
The Chase easy-access savings account has proved popular with savers thanks to its competitive rate and bonus deals. But, as the rate has dropped, has it lost its charm?
By Katie Williams Published