The US-based Paper and Pulp Producer company, International Paper Co. is selling a majority of its stakes in its Indian unit to West Coast Paper Mills Ltd. The company is being offered INR 557 crore for the deal, as reported by the daily news, VC Circle.
The paper company is bidding adieu to the Indian market after operating eight years in the country and becoming a renowned company in the pulp and paper industry.
SK Bangur Groups subsidiary, West Coast Paper will be buying not less than 51 per cent shares in the International Paper APPM Ltd and depending on IPOs success, the company can acquire at the most 60 per cent, according to the companys regulatory filing.
The business deal is offering IPALs stakes at a discounted rate to its current market price. While the open offer, which is being made to the public, is at the surcharge over the market price of IPALs stakes and further, the strategic business deal is inducing more participation from the public, according to the aforementioned reports.
Actually, West Coast is procuring shares from the US-based Paper company at INR 275 apiece whilst the open offer gives a share at INR 450 apiece.