Ess Dee Aluminium in sale talks with Australian packaging giant Amcor

NEW DELHI/MUMBAI: Aluminium foil maker, Ess Dee Aluminium is in talks with Australian packaging giant Amcor to sell controlling stake in the company, sources with direct knowledge said. Amcor has offered to buy the company at a valuation of Rs 2000 cr and the top officials of both the companies are meeting in Singapore today for the negotiations, a source said.

Intial talks hovered around Amcor rewarding Rs 100 cr manufacturing contract to Ess Dee. JPMorgan is the bank working on the deal and there is one more player in the fray, though, Amcor is turning out to be the frontrunner, a source with direct knowledge shared.

On the back of the deal talks, Ess Dee Aluminium has surged 64% since March 20. Ess Dee is trading at fresh highs on April 8.

Amcor is a global packaging solutions provider with a market capitalization of over $11 bn and has been in the process of inorganic growth as well. Ess Dee Aluminium with it’s niche in foil production which caters to the pharma sector can be a good opportunity for Amcor, an analyst pointed out.

Ess Dee Aluminium and Amcor have both declined to comment on the deal.