International Paper Completes Stake in APPM

International Paper announced it has completed the acquisition of a 75 percent stake in Andhra Pradesh Paper Mills (APPM).

International Paper purchased 53.5 percent of the APPM shares from Mr. L.N. Bangur and related family members and affiliates for approximately US$226 million in cash. These sellers have also entered into a covenant not to compete, for which they received a cash payment of $57 million. In addition, International Paper acquired an additional 21.5 percent of APPM shares in a public tender offer completed on Oct. 8, for approximately $105 million in cash. Paul Brown, president, IP India, will become executive chairman of the APPM Board of Directors, effective today.