Dec 14, 2004. /Lesprom Network/. Amcor announced an agreement to subscribe for 80 million new shares, representing a 16.7% equity interest, at HK$2.50 per share in Vision Grande Group Holdings Limited (Vision Grande) for a cost of HK$200 million (approximately A$34 million). Amcor has also agreed to acquire an option to subscribe for additional 96 million shares, also at HK$2.50 per share, to increase its equity interest to approximately 30.6% for an additional cost of HK$240 million (approximately A$41 million). This option expires on December 31, 2005. The transaction is subject to approval from Vision Grande shareholders and the regulatory authorities. Vision Grande, which listed on the Hong Kong Stock Exchange in March 2004, is a leading supplier of tobacco packaging in China with operations in Shenzhen, Nanjing (through a 48% owned associate) and Kunming (through a 35% owned associate). For the year ending December 2003, Vision Grande reported sales of HK$232 million and a net profit after tax of HK$90.2 million. Vision Grande’s major shareholder is its founder and Chairman, Mr Li Wei Bo, who has approximately 74% of the issued capital. Amcor’s Acting Chief Operating Officer, Mr Louis Lachal said: “This investment is an important step forward in the development of our Chinese tobacco packaging strategy. The Chinese tobacco industry, which is the largest cigarette market in the world, is presently restructuring to create fewer more efficient cigarette manufacturers. Vision Grande and Amcor together currently service 10 of the top 36 key cigarette manufacturers and are well positioned for growth in this changing environment. “Vision Grande has a strong commitment to innovation and has developed patented printing and lamination techniques that provide superior quality, anti-counterfeiting features and lower production costs. “Amcor has been operating in China for over ten years from its plants in Beijing and Qingdao which are both in Northern China and this new investment will give us improved geographic coverage and an enhanced product range. “Our Asian operations continue to provide solid returns and this new investment supports our strategy of continued growth in the region.”