International Paper will not make further offer to acquire Smurfit Kappa

06 Jun 2018 --- US-based packaging giants, International Paper, has announced that they will not be making any further bids to acquire Irish paper supplier, Smurfit Kappa. The latter rejected two approaches from International Paper which were deemed to undervalue the company’s “true intrinsic worth.”

Smurfit Kappa previously welcomed the Irish Takeover Panel’s June deadline for a proposed International Paper takeover bid, stating that it would provide certainty to the company and its stakeholders. International Paper confirmed at the time that it would not proceed with a further offer unless it is recommended by the Smurfit Kappa Board.

With no further bids planned, International Paper released the following statement:
In February 2018, International Paper provided representatives of Smurfit Kappa's Board of Directors with a proposal to acquire the company. Following discussions with shareholders of both companies, IP put forward a revised proposal on March 26, 2018. IP believes the revised proposal was highly attractive and formed a sound basis for engagement, which the company viewed as essential to determining the full value potential of the combination.

"While we continue to believe in the strategic and financial potential of this combination, our commitment was to proceed in a disciplined manner that would create value for both sets of shareholders," says Mark Sutton, Chairman and CEO of International Paper. "Moving forward, we remain focused on executing our strategy and are excited about our outlook. We have many levers to create shareholder value and will be responsible stewards of our shareholders' capital," Sutton adds.

As a result of this announcement, International Paper is bound by the restrictions set out in Rule 2.8 of the Irish Takeover Rules. International Paper reserves the right within the next 12 months to set aside this announcement where so permitted under Rule 2.8 (including Rule 2.8(c)(ii)).