Weekly

DS Smith moves closer to International Paper takeover

Richard Stuart-Turner, 27 August 2024

International Paper has filed a preliminary proxy statement regarding the all-share combination of the business with DS Smith, as the deal moves closer to completion.

On Friday (23 August), US-based business International Paper filed the preliminary proxy statement on Schedule 14A with the United States Securities and Exchange Commission.

The filing outlined both the forecast details and reasons behind the intended combination while also recommending the deal to shareholders.

It stated that, after careful consideration, the board of directors of International Paper had determined “that the acquisition is in the best interests of International Paper and the International Paper shareowners” and authorised and approved the share issuance.

“The International Paper board therefore recommends that you vote ‘For’ the Share Issuance Proposal and ‘For’ the Adjournment Proposal.”

According to the presented forecasts, International Paper’s adjusted EBITDA would total $1.93bn (£1.46bn) this year before rising to $2.43bn in 2025 and $2.64bn in 2026.

The forecasts were underpinned by assumptions regarding macroeconomic, regulatory or political conditions; market conditions; and operational structure and strategy remaining stable.

Worth £5.8bn, the terms of the deal were initially agreed in April and followed weeks of activity between the two companies.

The boards of London-headquartered DS Smith and Mondi had already reached an agreement in principle on the key financial terms of a possible all share offer by Mondi for DS Smith in March, but Mondi pulled out of the takeover race shortly after the International Paper offer was made public.

DS Smith’s share price was down 0.5% on Friday’s close to 474.60p at the time of writing at lunchtime today. It reached a 52-week high of 477.04p on Friday while its 52-week low was 260.50p.

Source: Printweek