Kokusai Pulp and Paper bids to acquire Spicers Limited
23 January 2019
The planned acquisition of Spicers is part of KPP's strategy that is meant to accelerate the company's business expansion in the Asia-Pacific region through M&A.
Japan’s pulp, paper and packaging trading company Kokusai Pulp and Paper (KPP) is set to take over Spicers Limited’s businesses in Australia and New Zealand for AUD90m. The two companies have already entered into a binding implementation agreement under which KPP will acquire all of the shares in Spicers pursuant to a scheme of arrangement.
The transaction is expected to be completed in July 2019, subject to approval from Spicers’ shareholders and other closing conditions.
KPP is considered one of the largest paper trading companies in Japan, with a reported volume of 2.2 million tpy of pulp, paper, packaging and other products. The company is also playing a significant role in the recovered paper market in Japan, collecting and selling 1.4 million tpy of RCP.
According to Spicers, the deal with KPP is part of a bigger, proposed scheme of arrangement that will deliver significant value to Spicers shareholders. They will reportedly receive an estimated AUD147.6m or 7.0 cents per share, on a fully diluted basis, in cash.