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Smurfit Kappa welcomes Irish Takeover Panel deadline

Published 17 May 2018

The Board of Smurfit Kappa Group has notes the announcement made by the Irish Takeover Panel, setting, at the request of Smurfit Kappa, a deadline of 7am on 6 June 2018 by which time International Paper must either announce an offer for Smurfit Kappa under Rule 2.5 of the Irish Takeover Rules or announce that it will not proceed with an offer for Smurfit Kappa.

Smurfit Kappa welcomes the certainty this provides for the Group and all of its stakeholders.

The Board also notes the announcement made today by International Paper. In particular, the Board notes International Paper’s confirmation that it will not proceed with a binding offer unless it is recommended by the Smurfit Kappa Board.

The Board has unanimously rejected International Paper’s proposals on the basis that they are significantly below the Board’s assessment of the Group’s true intrinsic worth and prospects and remain significantly below the valuations set by recent industry transactions.

The Board, together with its financial advisors, has given due and careful consideration to the International Paper proposals. As noted at the Group’s recent AGM, Smurfit Kappa has met and dealt with International Paper in a professional manner and has actively and thoroughly evaluated each of the proposals received.

 As we have done to date, the Board will continue, consistent with its fiduciary obligations, to act in the best interests of the Group and all of its stakeholders.

Smurfit Kappa has a market-focused and performance-led culture and operates as an integrated packaging business. The Group recently announced strong 2018 first quarter results and that trading in the second quarter remains very encouraging.

Smurfit Kappa continues to implement its medium-term plan which will enhance the Group’s operating platform for sustained growth. Smurfit Kappa is excited about its prospects in the short, medium and long-term and expects 2018 EBITDA to be materially better than 2017.

The Board continues to believe that the best interests of the Group’s stakeholders are served by pursuing its future as an independent company, operating as the European and Pan-American leader in paper-based packaging.

This announcement is made without the consent of International Paper.

There can be no certainty that any firm offer will be made by International Paper.

Source: Company Press Release