West Coast Paper to acquire International Paper APPM
West Coast Paper Mills is planning to acquire International Paper APPM, which is a leading integrated paper and pulp manufacturers in India. The company's promoters, namely International Paper Investments (Luxembourg) S.a.r.l. and IP International Holdings Inc. have executed a share purchase agreement with West Coast Paper Mills in this regard.
The existing promoters (Luxembourg and IP International Holdings Inc.) currently holds around 75 per cent stake in the International Paper APPM.
As per share purchase agreement, West Coast Paper Mills has agreed to acquire 51 to 60 per cent of the issued and paid-up equity share capital of the company as per the terms and conditions stated in the agreement.
West Coast Paper Mills is acquiring the company in an all-cash deal by paying Rs. 558 crore to Rs. 656 crore which translates per share valuation of Rs. 275 which is at a discount of nearly 35 per cent from today’s opening of Rs. 425. Further, the company has filed the mandatory open offer at Rs. 450.63 per share.