Nordic Paper's major shareholder Shanying International Holding has irrevocably committed to accept the offer. Independent members of the Board of Directors recommend shareholders not to accept the offer by SVP which is considered not fair and below the value of the company.
Global investment firm Strategic Value Partners (SVP), throught its newly formed company Coniferous BidCo has made a voluntary public offer to acquire all shares of Sweden's kraft and greaseproof paper manufacturer Nordic Paper. SVP is offering SEK50 per Nordic Paper share which puts the total value of the offer at approximately SEK3.345bn.
Chinese Shanying International Holding, who is the main shareholder of Nordic Paper holding 48.16 per cent of the company's shares through its wholly owned subsidiary Sutriv Holding AB, has already entered into an irrevocable undertaking to accept the offer by SVP. Shanying had stated its intention to divest all or part of its holding in Nordic Paper back in March.
The independent members of Nordic Paper's Board of Directors are convinced that the offer price does not reflect the value of the company and therefore unanimously recommend shareholders not to accept the offer. The offer price represented a discount of 0.5 per cent compared to the closing share price on 10 October and a discount of 7.3 per cent compared to the average trading prices for the last three months, the Board of Directors stated. The BoD also provided a a fairness opinion from Ernst & Young AB to support its view.
According to SVP, the offer price will not be increased.
The acceptance period for the offer is expected to commence on 6 November and end on 11 December. If all conditions are satisfied and the offer is completed, SVP will become a new main shareholder of Nordic Paper, something that the company's BoD is not opposing.
“The Board of Directors initiated a process to explore a potential sale of the company as a result of Shanying’s stated intention to divest its stake. We have explored various alternatives, and although the Board of Directors unanimously recommends shareholders not to accept the offer, we are pleased with today’s announcement. This represents an orderly transition to a new main owner, who we believe can contribute to the Company’s future development,”said Thomas Körmendi, Chairman of the independent committee of the Board of Directors of Nordic Paper.
