/ -- International Paper (NYSE: IP) has entered into an agreement with West Coast Paper Mills Limited (NSE: WSTCSTPAPR) to sell its controlling interest in International Paper APPM Limited (NSE:IPAPPM | BSE:502330), an India-based paper business. International Paper currently owns approximately 30 million shares, or 75% of the outstanding shares, of International Paper APPM Limited (APPM).
The transaction 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 (WCPM) launch of a tender offer. Pursuant to Indian securities law requirements, WCPM will launch a tender offer to acquire up to all of the APPM shares owned by public shareholders, which represents 25% of APPM's outstanding shares. The closing of IP's transaction with WCPM will occur following the completion of the tender offer and receipt of antitrust clearance. Depending on the results of that tender offer, WCPM will acquire from IP between 51% and 60% of the outstanding APPM shares at a price per share of 275 Indian Rupees. Once this transaction closes, WCPM will be responsible for the operations of APPM, and International Paper will be a passive investor until such time that IP has sold its remaining shares in APPM.
"As part of our strategic assessment of the IP portfolio, we have decided to exit our position in IP APPM," said Mark Sutton, Chairman and Chief Executive Officer. "This decision is a reflection of our continued focus on growing our global packaging and cellulose fibers businesses. Our paper business continues to perform well in India and we wish the team there the very best in the future."