International Paper sells the paper business with its headquarters in India


International Paper has concluded an agreement with West Coast Paper Mills Limited for the sale of its controlling interest in International Paper APPM Limited, a paper company with its headquarters in India. Currently International Paper holds approximately 30 million shares, that is 75% of the shares in circulation, of International Paper APPM Limited (APPM). «As part of our strategic assessment of the IP portfolio, we have decided to leave our position in IP APPM», declares Mark Sutton, President and Managing Director. «This decision reflects our constant attention to the growth of our global activity in the sector of packaging and cellulose».

The transaction should be complete by the end of the year, subject to the customary closing conditions, including obtaining the necessary governmental approvals and the launch of a public tender offer from West Coast Paper Mills Limited (WCPM). In compliance with Indian law requirements on securities, WCPM will launch a public tender offer for all the APPM shares owned by public shareholders, which represents 25% of the APPM shares in circulation.  Closure of the IP operation with WCPM will take place after completion of the public tender offer and receiving the antitrust authorisation. Depending on the results of the public tender offer, WCPM will purchase from IP between 51% and 60% of the APPM shares in circulation at a price of 275 Indian rupees per share.  Once this transaction has been concluded, WCPM will be responsible for APPM operations and International Paper will be a passive investor until IP sells its remaining APPM shares.