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.

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).

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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.