West Coast Paper Mills (WCPM) has agreed to acquire controlling stake in International Paper’s (IP) India-based paper business, International Paper APPM.

Paper

Image: WCPM has agreed to acquire International Paper’s India-based paper business. Photo: courtesy of Robert-Owen-Wahl / Pixabay.

At present, International Paper owns around 30 million shares or 75% interest in International Paper APPM.

International Paper APPM produces a range of specialty grade products that are custom engineered to suit specific and diverse range of applications.

The company manufactures writing, printing and copier papers for foreign and domestic markets. With headquarters in Hyderabad, the company operates production facilities at Rajahmundry and Kadiyam.

International Paper chairman and CEO Mark Sutton said: “As part of our strategic assessment of the IP portfolio, we have decided to exit our position in IP APPM.

“This decision is a reflection of our continued focus on growing our global packaging and cellulose fibers businesses. Our paper business continues to perform well in India and we wish the team there the very best in the future.”

Subject to satisfaction of customary closing conditions, the deal is expected to be completed by the end of this year.

To meet Indian securities law requirements, WCPM will launch a tender offer to purchase up to all of the APPM shares owned by public shareholders, representing 25% of APPM’s outstanding shares.

The closing of IP’s transaction with WCPM will occur upon completion of the tender offer and receipt of antitrust clearance.

WCPM will purchase from IP between 51% and 60% of the outstanding APPM shares at a price per share of INR275, depending on the results of that tender offer.

Once the deal concludes, WCPM will undertake the operations of APPM, while International Paper will serve as a passive investor until that time.

WCPM produces commercial to premium grades of paper and boards under six different product segments, including writing, printing, business stationery, specialty, industrial and packaging.

International Paper produces fibre-based packaging, pulp and paper products, and operates manufacturing facilities in North America, Latin America, Europe, North Africa, India and Russia.

The company produces corrugated packaging products to protect goods, tissue and other personal hygiene products that promote health and wellness.