The NYSE listed International Paper announced on Friday that it has completed the acquisition of a 75 per cent stake in Andhra Pradesh Paper Mills (APPM).
The US based paper major International Paper purchased 53.5 per cent of the APPM shares from Mr. L.N. Bangur and related family members and affiliates for approximately $226 million in cash. These sellers have also entered into a covenant not to compete, for which they received a cash payment of $57 million.
In addition, International Paper acquired an additional 21.5 percent of APPM shares in a public tender offer completed on October 8, for approximately $105 million in cash.
According to a statement Mr. Paul Brown, President, IP India, will become executive chairman of the APPM Board of Directors, effective today.
“As we complete this phase of the process and move into majority ownership, International Paper is well-positioned to help serve a rapidly growing Indian market,” said Mr. John Faraci, International Paper Chairman and Chief Executive Officer.