Shareholders in global packaging company Amcor have overwhelmingly voted to separate its packaging distribution business into a new company, Orora.
Some 99.79 per cent of votes cast were in favour of hiving off Amcor's old Australasia and Packaging Distribution business, formerly also known as AAPD.
Ahead of a shareholder vote at the scheme meeting, chairman Chris Roberts said there was more upside than downside to the demerger.
"The disadvantages of the demerger include reduced size and diversification of the businesses, one-off transaction and implementation costs and additional corporate and operating costs," he told shareholders on Monday.
"The board considers that the advantages of the demerger outweigh the disadvantages and risks."
The demerger becomes effective on December 17, with Orora to start trading as a separate company on the Australian Securities Exchange the following day.
"The Amcor board is of the view that the demerger will enhance shareholder value by enabling increased focus for each company to better pursue their own growth agenda and strategic priorities," Mr Roberts said.
"The demerger recognises that while Orora and Amcor are both packaging companies, they are very different in terms of product segments and geographic focus."
Mr Roberts will leave the Amcor board to become chairman of Orora while AAPD's outgoing president Nigel Garrard would become chief executive of the new company.
Amcor shares closed steady at $11.04.
