The outcome of the meeting, held on Friday (11 October), follows the requisite approvals of London-headquartered packaging giant DS Smith’s shareholders, obtained at a meeting held last Monday (7 October).
The boards of the two companies said they had initially reached agreement on the terms of the recommended all-share combination deal in April.
It will be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 and is subject to the terms and conditions set out in the scheme document that was published on 11 September.
The scheme remains subject to the satisfaction (or, where applicable, waiver) of the remaining conditions and further terms set out in the scheme document, including obtaining the relevant regulatory approvals, the sanction of the Court at the court hearing and the delivery of a copy of the court order to the Registrar of Companies.
The deal is expected to close late in Q4 2024.
Andy Silvernail, chairman and CEO of US-based International Paper, said: “The overwhelming approval from both DS Smith and IP shareholders confirms the strong support of this combination.
“Bringing the two companies together will create a true global leader of sustainable packaging solutions which will drive significant value for our employees, customers and shareholders.”
The boards of DS Smith and Mondi had already reached an agreement in principle on the key financial terms of a possible all-share offer by Mondi for DS Smith in March, but Mondi pulled out of the takeover race shortly after the International Paper offer was made public.
DS Smith’s share price was more or less unchanged at the time of writing at lunchtime today (14 October) at 467.60p. It reached a 52-week high of 484.60p last month while its 52-week low was 260.50p.
