Sequana appeals court ruling on $138m payment to BAT, Antalis IPO to be finalised in June
10% to 30% of Antalis International shares to be listed on the Euronext stock exchange in Paris by the end the second quarter and distributed to it shareholders. Antalis IPO and sale of Arjowiggins Security form part of Sequana's restructuring plan.
On 31 March, Sequana Capital, the French holding company of paper merchant Antalis and the paper manufacturer Arjowiggins , lodged an appeal against the ruling of the British High Court of Justice in London in litigation case with British American Tobacco (BAT) Industries over eight-year-old dividend payments by Sequana's former US subsidiary Windward Prospects, formerly Arjo Wiggins Appleton.
The ruling by the High Court of Justice, which ordered Sequana to pay at least €130m ($138m), subject to a maximum of €135m plus interests, in remedy to BAT, was reportedly posing important risks to the holding company and triggered Sequana to apply for creditor protection under safeguard proceedings (procedure de sauvegarde) of the French restructuring and insolvency law in mid-February. Sequana considers that it has "solid legal arguments to raise on its own appeal," the company said in its annual report 2016.
In the 2016 annual results report, Sequana also restated its goal to emerge from creditor protection as soon as possible and explained that strategic restructuring was proceeding according to plan. Sequana is negotiatng the sale of its Dutch banknote business Arjowiggins Security BV, including its VHP banknote paper mill in Appeldoorn, to Oberthur Fiduciaire and expects the transaction to be finalised in May. In addition, it reportedly initiated the process of disposing the remainings of Arjowiggins' Security division.
The IPO of Sequana's merchanting arm Antalis is said to be finalised in June 2017. Sequana said it would list 10-30% of Antalis International shares on the Euronext Paris and distribute them to its shareholders.
Find the entire article and any associated background information in EUWID Pulp and Paper issue 15.2017.
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