Kokusai Pulp and Paper Acquires World's 2nd Largest Paper Distributor

摘要

Less than a year after acquiring Spicers, Japanese paper giant Kokusai Pulp and Paper (KPP) is on the acquisition trail again, having signed a binding option to purchase the majority control of Antalis, the France-headquartered global paper, packaging and visual communications distributor with annual sales of around AUD3.8 (USD2.46) billion. The deal effectively adds 40% to KPP's existing revenues of around AUD5.3 (USD3.43) billion and was made possible following the May 2019 bankruptcy and subsequent liquidation of Antalis' largest shareholder, Sequana, a holding company who, with over 75% ownership (82.5% of voting rights), was brought undone by insolvencies within its subsidiary Arjowiggins and an the inability to settle a dividend dispute with British American Tobacco for around AUD280 (USD181.28) million. Antalis itself was spun out as a separate Euronext-listed company in June 2017, so is relatively unscathed by the Sequana liquidation, other than to soon have a new owner. The KPP offer is conditional on another Antalis shareholder, the public investment bank Bpifrance Participations, also selling its shares to KPP, representing and additional 8.5% of the share capital and voting rights. However, whereas Bpifrance will receive 40 Eurocents per share, Sequana receives just 10 Eurocents per share. Holders of the remaining 16.3% of Antalis shares will be offered 73 Eurocents per share for their holdings, likely followed by a 'squeeze out' by compulsory purchase of any remaining shares not taken up.