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March 29, 2011
International Paper Announces Strategic Entry into India
Photo: International Paper’s Mansifled, LA, mill — one of six containerboard packaging mills the company operates in the U.S. (Courtesy of International Paper).
International Paper (NYSE: IP) has entered into agreements with Mr. L.N. Bangur, and related family members and affiliates to purchase approximately 53.5 percent of the outstanding shares of Andhra Pradesh Paper Mills Limited (NSE: APPAPER) for approximately US$257 million in cash. In addition, International Paper has agreed to a US$62 million non-compete payment to the sellers.
Once completed, the transaction will position International Paper as the first global paper and packaging company with a significant position in India’s fast growing economy.
“APPM is an established and highly respected company in India, and is an excellent platform for International Paper to grow with the Indian paper and packaging markets,” said John Faraci, chairman and chief executive officer of International Paper.
L.N. Bangur, executive chairman, Bangur Group, said, “We have built a strong business in India, and the next phase of growth requires a different set of resources and capabilities. International Paper is the right company to take the business forward and deepen maturity of the sector in India.”
The share purchase and public tender are expected to be completed as early as the third quarter of 2011, subject to regulatory and other approvals, including the Security and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and, if applicable, the Competition Commission of India (CCI).
The Andhra Pradesh Paper Mills Limited (APPM), part of the Kolkata Based L.N . Bangur group, established in the year 1964, is a leading manufacturer of pulp and paper products and caters to both the domestic and foreign markets.
While, International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. It is the largest pulp and paper company in the world. Headquartered in Memphis, Tennessee, USA, the company employs about 59,500 people in more than 24 countries and serves customers worldwide.
|GlobalGiants.Com|
Edited & Posted by the Editor | 7:54 AM | Link to this Post
