(Corrects first bullet and paragraphs 1 and 3 to show Abu Dhabi's wealth fund is a joint buyer, not the sole buyer)
* Abu Dhabi fund and Germany's Triton buy plastics business
* Brambles expects $2.36 bln proceeds, plans $1.65 bln buyback
* Brambles shares hit two-year high
Feb 25 (Reuters) - Australia's Brambles Ltd BXB.AX said on Monday it would sell its plastic containers business to Abu Dhabi's wealth fund and a private-equity firm for an enterprise value of $2.51 billion, earmarking proceeds for a buyback and sending its stock higher.
From the $2.36 billion that the company expects in proceeds, it plans to return up to $1.95 billion to shareholders, Brambles said in a statement. Its shares hit a two-year high at the open of trade, gaining as much as 8.1 percent, while the broader market .AXJO rose 0.2 percent.
Brambles entered a binding agreement to sell its IFCO business to Germany's Triton and Luxinva, a wholly-owned subsidiary of the Abu Dhabi Investment Authority, and expects to complete the deal in the second quarter of 2019.
The pallets and container firm said its buyback would run up to $1.65 billion while $300 million of the proceeds will be returned to shareholders in cash, and the remaining amount will be used to repay the company's debt.
The Abu Dhabi Investment Authority did not have an immediate comment on the deal when contacted outside of business hours on Monday.
The agreement comes after Brambles in August said it planned to demerge its IFCO business. It added that the unit generated revenue of $1.10 billion in the 2018 financial year and an underlying profit of $133 million. in 2010 purchased then Germany-listed IFCO, maker of reusable plastic containers for transporting fresh produce, for about $1.3 billion.
Brambles reaffirmed its current progressive dividend policy for its full year dividend in 2019.