Tokushu Paper to Takeover Tokai Pulp in Stock Swap Deal
Nov. 21, 2006 - Japanese specialty papermaker Tokushu Paper Manufacturing Co. today said it would take over industrial papermaker Tokai Pulp Co. in a stock swap deal.
Tokai Pulp is the eighth largest paper producer by sales, manufacturing paper, paperboard plywood and pulp. Tokushu produces coated and laminated specialty papers and is ranked 12th in that market sector. The companies said they would set up a holding company, Tokushu Tokai Holdings Co. Ltd., in April.
The new entity plans to relist on the Tokyo Stock Exchange.
By market value, Tokushu is worth 28.9 billion yen ($245 million), more than Tokai's 22.6 billion yen ($191.5 million).
Tokushu and Tokai will swap their shares for shares in the holding company.
Tokushu will get 1.73 new shares for each of its existing shares while Tokai will get one share for each of its shares.
The deal will give Tokushu about 57 percent of the new company, which will have a market value of about 53 billion yen based on Tokai's closing price.
SOURCE: Reuters News