The Japanese Kokusai Pulp and Paper a company which markets cellulose, paper and packaging pulp, is ready to take over the business of Spicers Limitedin Australia and New Zealand for 90 million Australian dollars. The two companies have already concluded a binding agreement based on which KPP will acquire all Spicers’ shares in accordance with a framework of agreement.
The transaction should be completed in July 2019, subject to approval by Spicers’ shareholders and other closing conditions.
KPP is considered one of the leading commercial paper companies in Japan, with a declared volume of 2.2 million tonnes of wood pulp, paper, packaging and other products per year. The company is also carrying out a significant role in the Japanese waste paper market, collecting and selling 1.4 million tonnes of RCP (Recovered Paper) annually.
According to Spicers, the agreement with KPP is part of a wider framework of agreement which will provide a significant value to its own shareholders.