Shares in Ardagh Metal Packaging (AMP), the drink cans unit of Paul Coulson's Ardagh Group, edged higher as they began trading on Thursday following a merger with a New York-listed cash shell.
AMP shares advanced as much as 2.8 per cent to $10.89 (€9.20) in early trading in the US, a day after the company reversed into Gores Holding V, a special purpose acquisition company (SPAC), which itself gone through an initial public offering (IPO) 12 months ago to raise money for deals.
AMP has received about $1 billion between money raised in the original Gores Holding IPO and a subsequent share placing prior to the merger. Ardagh Group, led by chairman and chief executive Mr Coulson, has received $3.3 billion payment as part of the deal and retains an 82 per cent stake in AMP.
Gores Holding V changed its name to AMP on completion of the deal.
Mr Coulson said on Wednesday that Ardagh Group intends to remain “a committed, long-term majority shareholder as AMP continues its growth journey”.
AMP reported last week that its earnings before interest, tax, depreciation and amortisation (ebitda) jumped 24 per cent to $173 million on the back of 19 per cent sales growth, to $991 million, driven by soaring demand for beverage cans as drinks companies move away from plastic.
Mr Coulson has a 33 per cent indirect stake in Ardagh Group. He has indicated to shareholders in that business, which floated in New York in 2017 after placing an 8 per cent stake with stock market investors in an IPO, that they may be able to swap their Ardagh Group shares for AMP stock in time.
