IP completes sale of Carter Holt Harvey Stake
September 22, 2005 By Pulp & Paper Canada
STAMFORD, CT — International Paper has completed the sale of its 50.5% stake in Carter Holt Harvey Ltd. to Rank Gr…
STAMFORD, CT — International Paper has completed the sale of its 50.5% stake in Carter Holt Harvey Ltd. to Rank Group Investments Ltd. for NZ$2.50 per share, per the lock-in agreement signed by both companies on Aug. 16. Proceeds of the sale totaled US$1.14 billion, and will be used primarily to reduce debt.
IP’s acceptance of the offer satisfies the minimum shareholder acceptance condition of the full takeover offer, launched Sept. 14.
“This is an important first step in IP’s transformation plan, and I’m pleased with how quickly we completed the transaction. It’s an indication that we are serious and focused on getting value and executing our strategy,” said John Faraci, IP’s chairman and chief executive officer. “While we remain confident in CHH’s leadership and strategy to grow and improve, our priorities have evolved and the business climate has changed. The timing was right for us to divest our interests.”
Information supplied by International Paper
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