International Paper to buy majority of India mill for $257m
US paper and packaging company International Paper Co will buy a majority stake in Andhra Pradesh Paper Mills for about USD 257 million in cash.
March 30, 2011 / 09:59 IST
US paper and packaging company International Paper Co will buy a majority stake in Andhra Pradesh Paper Mills for about USD 257 million in cash.
The industry leader, which has operations in more than 20 countries, also raised its quarterly dividend by about 40%.Memphis, Tennessee-based International Paper will buy about 53.5% of outstanding shares in Andhra Pradesh Paper Mills (APPM), a part of India's LN Bangur group.International Paper raised its quarterly dividend for the third time in 12 months to USD 0.2625 per share.In accordance to the Indian securities law, International Paper will also make an offer to buy up to an additional 21.5% of the outstanding shares of APPM for about USD 104 million in cash.The share purchase and public tender are expected to be completed as early as the third quarter.Shares of International Paper, which has operations in North America, Europe, Latin American, Russia, Asia and North Africa, closed at USD 27.60 on Monday on the New York Stock Exchange. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
