International Paper to Purchase Shares of Andhra Pradesh Paper Mills for $257M

International Paper IP has entered into agreements with Mr. L.N. Bangur, and related family members and affiliates to purchase approximately 53.5 percent of the outstanding shares of Andhra Pradesh Paper Mills Limited for approximately US$257 million in cash. In addition, International Paper has agreed to a US$62 million non-compete payment to the sellers. Pursuant to Indian securities law, International Paper will also launch a mandatory public tender offer to acquire up to an additional 21.5 percent of the outstanding shares of APPM for approximately US$104 million in cash. International Paper anticipates acquiring up to 75 percent of APPM's outstanding shares through these two transactions.