Koch buys G-P.KOCH BUYS G-P G-P Gel'fand - Pinsker (channel code) . Georgia-Pacific Corp. (G-P), Atlanta, Georgia, USA and Koch Industries Koch Industries, Inc. (pronounced "koke") is a private corporation based in Wichita, Kansas. According to Forbes Magazine, it is the largest privately owned company in the world by revenue (surpassing Cargill in 2005 with the acquisition of Georgia-Pacific), with subsidiaries Inc., Wichita, Kansas
Wichita, also known as the Air Capital of the World, is the largest city in the U.S. state of Kansas, as well as a major aircraft manufacturing hub and cultural center. announced on November 13, 2005 that they have reached a definitive agreement for Koch Forest Products, Inc., a wholly owned Koch subsidiary, to make a US$ 48 per share cash tender offer for all shares of G-P. The transaction, with an equity value of US$ 13.2 billion and a total enterprise value of US$ 21 billion including all G-P debt, was unanimously approved by the boards of directors of both G-P and Koch. The price to G-P shareholders represents a premium of 39% based on the closing price of G-P common stock on November 11, 2005. The transaction is not conditioned on financing. Debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay has been secured by Koch through Citigroup. Koch has confirmed that G-P will be operated as a privately held, wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Koch Industries. G-P will continue to do business worldwide under the G-P name and continue to operate its businesses from its Atlanta headquarters as an independently managed company. Included in the transaction are all assets of G-P, including its North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and international consumer products segments, as well as its building products, packaging, and paper and bleached board segments. Koch acquired G-P's non-integrated market and fluff pulp operations at New Augusta, Mississippi New Augusta is a town in Perry County, Mississippi, United States. It is part of the Hattiesburg, Mississippi Metropolitan Statistical Area. The population was 715 at the 2000 census. It is the county seat of Perry CountyGR6. , and Brunswick, Georgia in May 2004. Since the purchase, Koch has invested in these businesses, which have been operating as Koch Cellulose. Upon completion of this transaction, these operations will be reintegrated with G-P businesses. The company also announced that on November 24, 2005 the Canadian Competition Bureau issued an advance-ruling certificate in connection with the tender offer by Koch Industries' indirect wholly owned subsidiary, Koch Forest Products, Inc., for all outstanding shares of Georgia-Pacific Corp. at a price of US$ 48 net per share in cash. The issuance of this advance ruling certificate satisfies the condition to the tender offer related to Canadian competition law approvals. The tender offer remains subject to certain other conditions as described in the offer to purchase. |
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