Pro-Pac Packaging intends to raise fully underwritten equity of A$54.8m ($44.13m) through a two for three non-renounceable rights issue.
The company has issued approximately 161.2 million new shares, priced at A$0.34 ($0.27) a share, under the offering. It has engaged Bell Potter Securities as its underwriter for the offering.
Pro-Pac’s major shareholder Bennamon has committed to take up its pro-rata entitlement of A$28.1m ($22.62m).
Australia-based Pro-Pac Packaging manufactures and distributes industrial, protective, and rigid packaging products.
Finnish food packaging company Huhtamaki has purchased International Paper’s foodservice packaging operations in China.
Huhtamaki has merged the acquired business units at Shanghai and Tianjin into its Foodservice Europe-Asia-Oceania business segment.
The Finnish company aims to provide improved services to its customers through the expansion of operations in China.
With manufacturing units across North America, Latin America, Europe, North Africa and Russia, International Paper provides renewable fibre-based packaging, pulp and paper products.