DS Smith now attracts the interest of International Paper. While a agreement in principle already signed between Mondi and DS Smith less than three weeks ago, International Paper has now entered the picture. The American paper manufacturer is also interested in acquiring the entire issued share capital of the British papermaker through a share buyback.
Under the terms of its proposal, International Paper is offering 415 pence per DS Smith share, and the UK group's shareholders would receive 0.128 5 International Paper shares for each DS Smith share, giving them a 33.8% stake in the combined group. The offer values the British paper manufacturer at £5.72 billion ($7.2 billion).
Mondi's takeover bid values DS Smith at £5.14 billion ($6.57 billion), with an implied value of 373 pence per share, and would leave DS Smith shareholders in control of 46% of the enlarged group.
International Paper's proposal is in line with its strategy "strengthen its corrugated packaging activities in Europe and create significant value for both International Paper and DS Smith shareholders" says the American group in a press release published by DS Smith.
International Paper has until April 23 to make a firm offer.
