West Coast Paper to invest hugely in plant and Machinery at International Paper APPM

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Read the news update on West Coast Paper Mill Ltd in context to acquisition of International Paper APPM.

West Coast Paper to invest hugely in plant and Machinery at International Paper APPM

Delhi | 4 June 2019 | The Pulp and Paper Times:

After come into a sell agreement with International paper, West Coast Paper is all set to overhaul the plant and machinery of APPM. Rajendra Jain, executive director and CFO of West Coast Paper told that International Paper's plant is old and machines installed there can no longer be used, hence it has to make investments in machines and plants.

He also added that the West Coast Company has factorised an investment of Rs 1,500 crore in International Paper that it made recently to buy new machines.

On the financials’ front, he said, “There is nothing wrong in the financials of the acquired company. 

International Paper Co., the world’s biggest producer of pulp and paper, is selling a majority stake in its Indian unit to West Coast Paper Mills Ltd for at least Rs 557 crore ($80 million), bidding adieu to the country eight years after becoming the only top-league paper company ever to enter India.

West Coast Paper Mills has entered into a share-purchase agreement to acquire about 51-60 per cent stake in NYSE-listed International Paper’s (IP) Indian unit, International Paper APPM Ltd. The deal, which is pursuant to regulatory approvals and an open offer, would be for about ₹558-656 crore in cash.

 “As part of our strategic assessment of the IP portfolio, we have decided to exit our position in IP APPM,” said Mark Sutton, the company’s Chairman and CEO.

“This decision is a reflection of our continued focus on growing our global packaging and cellulose fibres businesses,” he added.

The deal is expected to be completed by the end of the year subject to satisfaction of customary closing conditions, including obtaining required governmental approvals and West Coast Paper Mills Limited's launch of a tender offer, the statement said. 

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