International Paper Company has confirmed that it is in discussions regarding a possible offer to acquire DS Smith, despite Mondi and DS Smith reaching an agreement in principle on the key financial terms of a deal earlier this month. The company has made an all-equity proposal to acquire the entire issued share capital of London-headquartered DS Smith. Under the terms of the proposal, DS Smith shareholders would receive 0.1285 shares in International Paper for each share they own in DS Smith, resulting in DS Smith shareholders owning approximately 33.8% of the combined group.

Based on the International Paper share price of $40.85 at close of business on Monday (25 March), the terms of the proposal represent a value of 415p and premium of 48% to DS Smith’s undisturbed share price on 7 February 2024 of 281p per DS Smith share. 

International Paper said a combination between the two businesses would “create a truly global leader in sustainable packaging solutions that is well positioned in attractive and growing markets”. It would significantly strengthen the combined corrugated packaging business in Europe with greater customer offerings and create the opportunity to integrate the mill and box networks.

International Paper said there could be no certainty that any offer would ultimately be made for DS Smith and that a further announcement would be made if and when appropriate. In accordance with Rule 2.6(a) of the Takeover Code, International Paper is required to either announce a firm intention to make an offer for DS Smith in accordance with Rule 2.7 of the Code, or announce that it does not intend to make an offer.

Source: Print Week
Source: EUWIND Paper
Source: Packaging Gateway