International Paper Granted Three Weeks To Finalize Binding Offer for Smurfit Kappa

SEATTLE (Scrap Monster): The Irish Takeover Panel has announced that International Paper Company (IP) has time until 7 AM June 6, 2018 to decide on whether or not to make binding offer to acquire the assets of Smurfit Kappa. The Rule states that failure to make an announcement before the deadline would ban IP from making another approach for a period of one year.

IP has extended support to the timeline set by the Irish Takeover Panel. The group signaled that it is ready to improve the terms and value of its proposal for Smurfit Kappa takeover offered during the month of March this year. Furthermore, IP would consider secondary listing on London Stock Exchange to enable Smurfit Kappa shareholders to realize the potential value created by the transaction. It suggested a meeting between the two companies to discuss the synergy potential of the combined entity. Meantime, IP is not expected to proceed with a binding offer unless it is recommended by Smurfit Kappa’s Board of Directors. It clarified that no hostile bid will be mounted.

Meanwhile, Smurfit Kappa too welcomed the announcement by the Irish Takeover Panel, stating that the order would provide a sense of certainty for the Group and all of its stakeholders. It noted that this statement is made without the consent of International Paper as there is no certainty that any firm offer will be made by them. Further, it reiterated that the Board will continue to act in the best interest of its shareholders.

After rejection of the initial offer, IP had come up with a revised offer of €25.25 in cash and 0.3028 new International Paper shares for each Smurfit Kappa ordinary share held by them, as part of acquiring the entire issued and to-be-issued share capital of Smurfit Kappa. Smurfit Kappa had publicly rejected the revised proposal too, by deciding to pursue its future as an independent company.