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Paper Recycling March 15, 2019 03:30:04 PM

Smurfit Kappa Tenders Acquisition Offer for Minority Stake in Colombian Unit

Paul Ploumis
ScrapMonster Author
The company has launched a €90 million offer towards purchase of the remaining over 30% stake in the company, of which it currently owns 69.94% share.

Smurfit Kappa Tenders Acquisition Offer for Minority Stake in Colombian Unit

SEATTLE (Scrap Monster): Smurfit Kappa Group plc- Europe’s leading corrugated packaging company has announced its intention to purchase minority shares in Cartón de Colombia S.A., Colombia. The company has launched a €90 million offer towards purchase of the remaining over 30% stake in the company, of which it currently owns 69.94% share.

According to company press release, minority investors in the company, who hold about 15.4% of the stock have already agreed to sell their shares to the company as part of the planned transaction. The share purchase transaction is expected to be completed by end of June this year, subject to customary conditions and regulatory approval by Colombian authorities. Smurfit Kappa intends to fund the deal using existing cash resources.

The announcement about the launch of the tender offer comes in the midst of company’s plans to develop a large paper facility in Colombia at an investment of around €200 million to €400 million. The decision on what could be the group’s largest ever such project is expected to be announced this year.

Last week, Smurfit Kappa had announced expansion of its global Bag-in-Box footprint by acquiring a new manufacturing facility in Texas, USA. The acquisition of the San Antonio injection facility was aimed at boosting the company’s Vitop tap manufacturing capabilities on order to cater to the growing demand for premium bag-in-box wines. It had also completed the takeover of Balkanpack- a Bulgarian corrugated board and packaging manufacturer.

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