UPM-Kymmene hopes to raise a 1.53bn (E2.5bn) loan to finance its acquisition of German paper producer Haindl Paper (PrintWeek, 1 June).
The Finnish papermaker will meet the remainder of the acquisition price of 2.1bn with the proceeds of a 300m share issue, which is conditional on completion of the takeover.
The group will seek shareholder approval for the deal at its AGM on 2 August.
The loan is being arranged by BNP Paribas, Commerzbank, JP Morgan and Nordea and will cover the cash element of the bid and refinance existing debt.
Meanwhile, UPM-Kymmene is set to rebuild paper machine eight at its Tervasaari plant. The year-long operation will see capacity of release paper at the plant increasing from 130,000 tonnes to around 180,000 tonnes a year.
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"Well done all involved... great to see the investment to increase the productivity in the same footprint- much more sustainable than popping another one up."
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"Does appear an odd decision as with that level of shareholder funds they would be liable for the staff redundancy and cover the insolvency costs. It’s not like they could take the money and dodge..."
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