Nordic Paper Says Major Stakeholder, Shanying International, Intends to Sell Its Shares

Nordic Paper is a producer of specialty papers — primarily kraft papers and natural greaseproof papers. Shanying International currently holds 48.16% of the outstanding shares in the company.

March 14, 2024 - Nordic Paper Holding AB announced that Shanying International Holding Co., Ltd intends to sell all or part of its stake in Nordic Paper.

Nordic paper noted that Shanying's intentions are at an early stage and that there can be no guarantee that a sale will be achieved or at what terms, including price.

According to Nordic Paper, Shanying currently holds 48.16% of the outstanding shares in Nordic Paper. A sale of a part or all of Shanying's stake to a third party may trigger the need for a mandatory tender offer for all shares in Nordic Paper.

In a press statement, Nordic Paper said, "Given this situation, the Board of Directors of Nordic Paper has decided to initiate a process to explore potential interest from third parties for all shares in the Company. The purpose of the process is to seek the best possible value and outcome for all shareholders in Nordic Paper.

"The process may ultimately result in a public tender offer for all outstanding shares in Nordic Paper where shareholders would have the choice of whether or not to accept the offer. Any such offer would include, inter alia, an opinion regarding the offer from the Board of Directors of Nordic Paper, represented by an independent bid committee, and the provision of a fairness opinion from an independent financial advisor," the company concluded.

The Board of Nordic Paper has engaged BofA Securities as financial advisor and Vinge as legal counsel.

About Nordic Paper

Nordic Paper is a producer of specialty papers — primarily kraft papers and natural greaseproof papers. The company has five paper mills: Bäckhammar, Åmotfors and Säffle in Sweden; Greåker in Norway and another in Quebec in Canada. The Bäckhammar mill also produces pulp.

Bäckhammar Mill
Paper machines: PM4 and PM5. Total capacity: 159,000 tonnes per year (tpy) of paper and 230,000 tpy of pulp.

Åmotfors Mill
Paper machines: PM1 and PM6. Total capacity: 50,000 tpy of paper.

Säffle Mill
Paper machines: PM2 and PM3. Total capacity: 33,000 tpy of paper.

Greåker Mill
Paper machines: PM 1 and PM 4. Total capacity: 44,000 tpy of paper.

Quebec Mill
Paper machine: PM 1. Total capacity: 13,600 tpy of paper.

SOURCE: Nordic Paper AB