Thursday 27 April 2017

Ardagh share sale to help cut €7bn debt

Ardagh chairman Paul Coulson says the IPO will raise ‘modest’ funds but is a logical progression
Ardagh chairman Paul Coulson says the IPO will raise ‘modest’ funds but is a logical progression
Donal O'Donovan

Donal O'Donovan

Packaging giant Ardagh Group has told analysts that plans to list shares on the New York Stock Exchange later this quarter are well advanced.

Chairman Paul Coulson said the amount he's planning to raise by selling around 5pc of shares in the company in an initial public offering (IPO) will be relatively small but that it was an important step for the business.

"The process with the IPO is well advanced and our objective is to IPO on the New York Stock Exchange later this quarter. As previously outlined, whilst the funds to be raised in the IPO are expected to be relatively modest and used for deleveraging, becoming a publicly listed company represents a very logical progression," Mr Coulson told an investor call.

The IPO has been in the works since at least 2011, but has been delayed a number of times due to market conditions.

The share sale is likely to raise €300m - valuing the business at between €5bn and €6bn. Mr Coulson said the money raised will be used to pay off debts, which currently stand at €7.2bn.

Along with his family, Mr Coulson owns about 36pc of Ardagh.

Ardagh Group is a global supplier of glass and metal containers to the food and drinks industry.

Yesterday Ardagh reported 2016 earnings before interest, tax, depreciation and amortisation (Ebitda) of €1.16bn, up from €934m. Revenue rose to €6.34bn from €5.2bn a year earlier.

Performance was boosted by last year's $3.4bn (€3.2bn) acquisition of assets from rivals Ball Corporation and Rexam.

Irish Independent

Promoted articles

Also in Business