Korsnäs to merge with Billerud

Published: 25-Jun-2012

Kinnevik to become active owner

Virgin fiber packaging material businesses, Korsnäs and Billerud, are set to merge in order to form an international player within the packaging industry.

Kinnevik intends to be the active owner in the new company. In the transaction Korsnäs, including 5% of the shares in Bergvik Skog and 75% of the shares in Latgran, is valued at approximately SEK 11bn on a debt free basis, which is approximately SEK 400m higher than the estimated fair value in Kinnevik’s interim report on 31 March, 2012. After closing, Kinnevik’s net debt will be reduced by SEK 8.4bn.

Kinnevik’s ceo and president, Mia Brunell Livfors, said: “I am convinced that the merger between Korsnäs and Billerud is positive for both Korsnäs and Kinnevik’s shareholders. Kinnevik will be the largest owner in the merged business, which will be a leading packaging company with strong market positions within its key product segments. The cash proceeds resulting from the transaction create additional financial flexibility for Kinnevik, while offering continued exposure to an attractive industry that has been part of the Kinnevik investment story since the company’s inception.”

You may also like