LONDON (Alliance News) - British Polythene Industries PLC on Wednesday said it will make a larger gain on the sale of its Chinese subsidiary than expected, and that trading in the first quarter to the end of March was in line.
British Polythene struck a deal in January to sell the Chinese business to Amcor (China) Investment Co Ltd, a unit of Australian packaging company Amcor.
The payment will comprise GBP6.4 million upfront, plus another GBP3.0 million over 12 months based on certain post-completion arrangements.
British Polythene had expected to make a GBP4.0 million gain on the sale but upgraded this to GBP5.0 million on Wednesday
The company added that trading was in line with its expectations, boosted by lower energy costs and favourable currency movements.
British Polythene shares were up 8.1% to 735.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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