Mativ Holdings eyes best day in 3 yrs on sale of Engineered Papers business

Mativ Holdings

01/08/2023 19:17

** Shares of specialty materials Mativ Holdings Inc  MATV.N 
rise 14.3% to $18
    ** Co announces sale of its Engineered Papers (EP) business
to Singapore-based co, Evergreen Hill Enterprise, for $620 mln 
    ** Intends to use net sale proceeds of about $575 mln to
reduce debt
    ** Stock set to post best day since March 2020 if gains hold
    ** Also revises capital allocation strategy with re-sized
annual dividend of $0.40 per share and $30 mln share repurchase
program
    ** "While a solid business, EP's concentration in the
tobacco industry is not aligned with Mativ’s long-term ambition
and presents a more attractive value proposition under new
strategic ownership" - CEO Julie Schertell
    ** Stock down 14.9% YTD

    
    

 (Reporting by Sruthi Narasimha Chari in Bengaluru)
 ((Sruthinarasimha.chari@thomsonreuters.com))