Shares in DS Smith (LON: SMDS) have climbed higher in today’s session, as the company announced the sale of two packaging businesses in North Western France and Portugal. The move came after the company inked a deal to buy Spain’s Europac for €1.9 billion (£1.66 billion) last year.
As of 10:42 BST, the DS Smith share price had added 1.50 percent to 357.60p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,470.28 points, flat in percentage terms. The group’s shares have given up more than 22 percent of their value over the past year, as compared with about a 3.8-percent gain in the Footsie.
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DS Smith unveils disposals
DS Smith announced in a statement this morning that it had reached an agreement to sell two packaging businesses in North Western France and Portugal to International Paper for €63 million (approximately £54 million). The company explained that the disposals fulfilled the commitment made to the European Commission in relation to the clearance of the FTSE 100 group’s acquisition of of Papeles y Cartones de Europa, S.A., known as Europac, which completed earlier this year.
“I am delighted that we are on track to meet our commitment to the European Commission with both an attractive price and a good home for the businesses in International Paper,” DS Smith chief executive Miles Roberts said in the statement.
Analysts on blue-chip group
The 10 analysts offering 12-month targets for the DS Smith share price for the Financial Times have a median target of 455.00p on the shares, with a high estimate of 550.00p and a low estimate of 365.00p. As of April 12, the consensus forecast amongst 13 polled investment analysts covering the blue-chip packaging group has it that the company will outperform the market.