International Paper acquires majority stake in Andhra Pradesh Paper Mills of India.
M2 EQUITYBITES-October 17, 2011-International Paper acquires majority stake in Andhra Pradesh Paper Mills of India(C)2011 M2 COMMUNICATIONS http://www.m2.com
Paper company International Paper (NYSE:IP) reported on Friday the completion of the acquisition of a 75% stake in Andhra Pradesh Paper Mills (APPM), located in India.
Under an agreement, International Paper acquired 53.5% of the APPM shares from L.N. Bangur and related family members and affiliates for approximately USD226m in cash.
Additionally, the sellers have also entered into a covenant not to compete, for which they received a cash payment of USD57m.
Concurrently, International Paper acquired an additional 21.5% of APPM shares in a public tender offer for approximately USD105m in cash.
In conjunction, Paul Brown, president of IP India, has been named executive chairman of the APPM board of directors with immediate effect.
APPM is an integrated paper manufacturer in India and operates two mills with a combined annual capacity of 250,000 tonnes of uncoated freesheet paper. It generated sales of approximately USD160m.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 17, 2011|
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