Pallets giant Brambles says may sell its IFCO division after announcing it will demerge the reusable containers business, sending its shares sharply higher.
Pallets and container firm Brambles will demerge and list its IFCO reusable plastic containers division and consider a sale of the separated business.
Brambles purchased then Germany-listed IFCO, maker of reusable plastic containers for transporting fresh produce, for about $US1.3 billion in 2010
"The separation is consistent with Brambles' core strategic priorities and will deliver a value creation opportunity for shareholders," Chairman, Stephen Johns, said in a statement.
Brambles shares surged over nine per cent to their highest level since January 2017 and saw their steepest intraday climb in two-and-a-half years.
"It (IFCO RPC) is well positioned for its future as an independent company with a singular focus," said Brambles' Chief Executive, Graham Chipchase.
Brambles also released its full-year results on Friday, posting a four per cent rise in full-year underlying profit from continuing operations to $US996.7 million ($1.37 billion) at actual forex rates, helped by strong sales contributions from businesses including IFCO.
Statutory post-tax profit more than quadrupled from the previous year to $US747.1 million ($1.03 billion), driven by a $US127.9 million tax benefit from the recent US tax reform as well as an impairment charge that had impacted fiscal 2017 results.
The company also said it would undertake an evaluation of its capital structure as part of the planned IFCO separation and that further information on the separation will be communicated in due course, including the listing location for IFCO.
Brambles shares were up 64 cents, or 6.4 per cent, to $10.60 at 1201 AEST.