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U.S. firm buys 53.5 percent stake in Andhra Pradesh Paper
By siliconindia
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Wednesday, 30 March 2011, 09:35 IST
Hyderabad: U.S.-based paper and packaging firm International Paper (IP) has entered into agreements with Kolkata-based L N Bangur Group and affiliates to buy 53.5 percent stake in Andhra Pradesh Paper Mills for approximately $257 million. Adding to it, International Paper has agreed to a $62 million non-compete payment to the sellers.
Subject to Indian securities law, International Paper will also launch a mandatory public tender offer to acquire up to an additional 21.5 percent of the outstanding shares of APPM for approximately $104 million in cash, said the company.
International Paper anticipates acquiring up to 75 percent of APPM's outstanding shares through these two transactions. After completion of the transaction, IP will be the first global paper and packaging firm with a significant position in India's fast growing economy.