Brief: UPM And Sappi Form Graphic Paper Joint Venture
BRIEF-UPM And Sappi Form Graphic Paper Joint Venture May 28 (Reuters) - UPM-Kymmene Oyj UPM.HE:
INSIDE INFORMATION: UPM AND SAPPI HAVE SIGNED A DEFINITIVE AGREEMENT ON THE GRAPHIC PAPER JOINT VENTURE
JOINT VENTURE TO BE OWNED 50/50 BY UPM AND SAPPI
JOINT VENTURE EXPECTED TO CREATE €100 MILLION ANNUAL SYNERGIES
JOINT VENTURE SECURES €600 MILLION FINANCING AND €100 MILLION REVOLVING CREDIT FACILITY
JOINT VENTURE COMBINED ENTERPRISE VALUE AT €1420 MILLION
TO RECEIVE €475 MILLION CASH, €98 MILLION SHAREHOLDER LOANS, AND 50% EQUITY IN JOINT VENTURE
SAPPI TO RECEIVE €90 MILLION CASH, €10 MILLION SHAREHOLDER LOAN, AND 50% EQUITY IN JOINT VENTURE
SEES TRANSACTION TO HAVE POSITIVE IMPACT ON UPM'S PROFITABILITY MARGINS (EBIT % OF SALES)
Source text: ID:nWkr5LbHCF
Further company coverage: UPM.HE
(Gdansk Newsroom)
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