Smurfit Kappa says IP's "unsolicited" and "highly opportunistic" approach significantly undervalues the group's assets and fails to reflect its "true intrinsic worth."
International Paper (IP) has reacted to yesterday's statement by the Irish paper and packaging group Smurfit Kappa Group (SKG) and confirmed the submission of a proposal to acquire the entire share capital of SKG. IP said, it considered the potential takeover of SKG to be "an excellent strategic fit" that would form a "premier global packaging company able to serve both local and global customers more effectively."
The US company disagrees with the Board of Smurfit Kappa which has rejected IP's takeover proposal as being "highly opportunistic" and "significantly below the valuations set by recent industry transactions."
According to IP, the takeover proposal values SKG's "current issued share capital at approximately €8.6bn and would provide Smurfit Kappa shareholders with a shareholding of approximately 15% in International Paper", representing a premium of 30% to the company's closing share price of €28 on the last business day prior to IP's approach to SKG.
In a new statement on 7 March, Smurfit Kappa's management has reiterated its rejection of IP's proposal and once again advised its shareholders to "take no action."