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Shares of Andhra Pradesh Paper Mills surged by about 20 per cent to hit the upper limit on the BSE today after the company announced that the US-based International Paper would buy a majority stake in the Indian firm.
The scrip of Andhra Pradesh Paper Mills or AP Paper Mills advanced by 19.99 per cent to touch the upper circuit at Rs 236.15 on the Bombay Stock Exchange.
Similar movement was witnessed on the National Stock Exchange, with the counter hitting the upper circuit at Rs 236.95, up 20.01 per cent from its previous close.
International Paper, the US-based paper and packaging major, has entered into an agreement with the Kolkata-based L N Bangur Group to buy 53.5 per cent stake in AP Paper Mills for about $257 million.
The company will also launch a mandatory public tender offer to acquire up to an additional 21.5 per cent of the outstanding shares of AP Paper Mills for approximately $104 million in cash.
In terms of volume, about 29,831 shares got traded on the NSE, while about 9,844 shares changed hands on the BSE.
Meanwhile, the shares of other paper firms such as Ballarpur Industries, JK Paper and West Coast Paper Paper Mills shot up in the range of 14-19 per cent on the BSE, which analysts attributed to ‘sentimental’ buying in the wake of the buyout.
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