16th May 2018 11:47
LONDON (Alliance News) - International Paper Co says Wednesday the Irish Takeover Panel has given it until June 6 to announce whether or not to make a binding offer for packaging firm Smurfit Kappa Group PLC, as it proposed a secondary London listing under its current offer.
In late March, Smurfit Kappa rejected a new bid from New York-listed International Paper as failing to "value the group's true intrinsic business worth and future prospects."
International Paper's EUR25.25 in cash, and 0.3028 new shares in the US for each Smurfit Kappa shares valued the Irish firm at around EUR8.89 billion.
"International Paper believes its current proposal represents a compelling strategic and financial rationale for a combination with Smurfit Kappa," International Paper said in a statement Wednesday. "From the outset, IP has stressed the importance of proceeding on an agreed basis. To that end IP confirms that it will not proceed with a binding offer unless it is recommended by Smurfit Kappa's board of directors."
International Paper added it would seek a secondary listing in London should it acquire Smurfit Kappa "to enable Smurfit Kappa shareholders to share in the potential value created by a transaction."
The deal would also allow a mix-and-match facility for Smurfit shareholders, allowing them to elect to receive a greater or lesser proportion of cash under the offer.
"International Paper believes both companies should meet to discuss the synergy potential of the combined company and gain a better understanding of each company's current outlook, in order to explore a path forward to a recommended transaction," the company added.
Shares in Smurfit Kappa were 4.1% lower at 2,982.00 pence on Wednesday.
Related Shares:
SKG.L