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IP International Holdings, Inc, and International Paper Investments (Luxembourg), both group entities, have proposed acquisition of 20.05 per cent and 54.95 per cent shares in listed entity International Paper APPM Limited from IP Holdings Asia Singapore pte Holdings, Inc.
The entire transaction when completed will enable IP International Holdings, Inc to become the promoter of the Andhra Pradesh-based International Paper APPM Ltd with 75 per cent stake.
In a regulatory filing made to the BSE, IP International Holdings, Inc and International Paper Investments (Luxembourg) have informed that they propose to acquire 7,971,496 shares and 21,856,033 shares respectively, amounting to 20.5 per cent and 54.95 per cent of the equity from IP Holdings Asia Singapore Pte Limited on June 22, 2016. The shares are proposed to be acquired at the value of $ 32,070,357 and $ 87,929,642.
Reorganisation within IP
IP International Holdings, Inc is the parent company of the IP Holdings Asia Singapore Pte Limited. The move is part of the international reorganisation within the International Paper Company. Following this, IP Holdings Asia Singapore Pte Limited will transfer 20.05 per cent of the equity stake it holds in International Paper APPM Limited. This is towards the debt payment to be made to IP International Holdings Inc.
While the average traded price is Rs 294.34 per share, the acquirer has informed that it would not be more than 25 per cent of the price.
Once the transaction is completed, IP International Holdings, Inc will have 20.5 per cent stake, and together with International Paper Investments (Luxembourg) (which already has 54.95 per cent stake in the company), the total stake will go up to 75 per cent.
It may be recalled that the US-based paper major International Paper, through its Singapore holding entity had acquired majority stake in Andhra Pradesh Paper Mills Limited.
International Paper APPM Limited shares were trading at Rs 300, up 5 per cent during the day on the BSE.
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