Smith(DS) PLC (SMDS)

[idpickering]

DS SMITH IN TALKS WITH INTERNATIONAL PAPER ABOUT POSSIBLE TAKEOVER

A bidding war was potentially on the cards on Tuesday as packaging company DS Smith - which recently agreed to be taken over by Mondi - confirmed it is in talks with New York-listed International Paper about a possible takeover offer.
Under the terms of the proposal, DS Smith shareholders would receive 0.1285 shares in International Paper for each of theirs, meaning they would own around 33.8% of the combined entity.

Based on International Paper's share price of $40.85 at the close on Monday, this represents 415p and a premium of 45% to the closing DS Smith share price on 7 February, which was the last day before the start of the offer period with Mondi.

"The board acknowledges the strategic merits and potential for value creation through a combination with International Paper," DS Smith said.

"Accordingly, the board is progressing its discussions with International Paper regarding the proposal."

It added that there can be certainty as to whether any offer will be made nor the terms of any such offer.

International Paper has until 23 April to either announce a firm intention to make an offer or walk away.

https://www.hl.co.uk/shares/shares-sear ... dinary-10p

The above quote is from an item in the company news area of the above HL page for SMDS.

SMDS are up 7.25% as I type.

Ian (No holding).

[scottnsilky]

Thanks Ian for your post, is there a word missing from the second to last line of the quote? It doesn't look right to me as is.
I hold SMDS.

[idpickering]

Thanks Ian for your post, is there a word missing from the second to last line of the quote? It doesn't look right to me as is.
I hold SMDS.

You're welcome. I just checked, and the quote of the original is correct.

Ian.

[torata]

Thanks Ian for your post, is there a word missing from the second to last line of the quote? It doesn't look right to me as is.
I hold SMDS.

You're welcome. I just checked, and the quote of the original is correct.

Ian.

I think scottnsilky is right that there may be the word 'no' missing from the second to last line (in the original HL article)
It added that there can be no certainty as to whether any offer will be made nor the terms of any such offer.

torata

[Arborbridge]

Hmm - if my shares go "Stateside" do I want to be bothered? I think that would force me to take the cash, which would quite likely be re-invested outside my HYP. Or perhaps another cruise!

Arb.

[idpickering]

I think scottnsilky is right that there may be the word 'no' missing from the second to last line (in the original HL article)
It added that there can be no certainty as to whether any offer will be made nor the terms of any such offer.

torata

I stand corrected. Just me being human.

Ian.

[daveh]

Hmm - if my shares go "Stateside" do I want to be bothered? I think that would force me to take the cash, which would quite likely be re-invested outside my HYP. Or perhaps another cruise!

Arb.

I'll wait and see. I got Jackson with my Pru holding and sold almost immediately, and would have been better keeping them. I'll loss some of the income due to withholding tax, but will see what sort of dividend they produce. I think I'd prefer Mondi as they are on the LSE, but maybe International Paper will have secondary listing on the LSE like BHP and S32

[idpickering]

Statement re Possible Offer.

International Paper Company ("International Paper") is pleased to provide an update on its possible offer for DS Smith plc ("DS Smith"), pursuant to which International Paper would acquire the entire issued and to be issued share capital of DS Smith (the "Combination").

International Paper confirms that significant progress has been made in reciprocal due diligence as facilitated by the DS Smith Board and Management, and that it is now in a position to provide shareholders with more detail on the type and quantum of synergies it believes would arise from the Combination.

Corrugated packaging solutions is a core component of DS Smith's business. Due diligence has confirmed International Paper's belief that the Combination will significantly strengthen the combined packaging business and customer offerings - with packaging representing 84% of International Paper's current sales, approximately $1.5 billion (£1.2 billion1) of which is driven from European sales.

Commenting on the Combination, Mark Sutton, Chairman and CEO of International Paper, said: "Bringing International Paper together with DS Smith is a logical next step in International Paper's strategy to create value by strengthening our packaging businesses in North America and Europe. By combining the strengths of both companies, we believe we can enhance our offering of sustainable packaging solutions for customers in attractive and growing markets."

https://www.investegate.co.uk/announcem ... er/8121377

SMDS are up over 2% as I type.

Ian (No holding in either outfit).

[idpickering]

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER

https://www.investegate.co.uk/announcem ... ny/8123717

Ian.

[micrographia]

Hmm - if my shares go "Stateside" do I want to be bothered? I think that would force me to take the cash, which would quite likely be re-invested outside my HYP. Or perhaps another cruise!

Arb.

If successful in their bid, International Paper have said they would seek a secondary London listing.

EEM

[Arborbridge]

Hmm - if my shares go "Stateside" do I want to be bothered? I think that would force me to take the cash, which would quite likely be re-invested outside my HYP. Or perhaps another cruise!

Arb.

If successful in their bid, International Paper have said they would seek a secondary London listing.

EEM

No easy excuse for selling, in that case.

[MrFoolish]

What would happen if International Paper didn't have an LSE listing? I imagine most on-line brokers can cope with US listed shares?

[micrographia]

No easy excuse for selling, in that case.

Indeed.

What would happen if International Paper didn't have an LSE listing? I imagine most on-line brokers can cope with US listed shares?

In my case, as daveh has already noted it would involve Dividend Withholding Tax being applied to any income from International Paper. Given that I hold DS Smith for income and best guess at present is that International Paper will be less generous in their payouts anyway, that would probably be enough for me to take their money and reinvest it in UK equity income. Not a major issue replacing the DS Smith dividend stream given the uplift in value of the shares I'd be disposing of.

EEM

[MrFoolish]

Re. withholding taxes, I believe you are exempt within a SIPP.

[gryffron]

What would happen if International Paper didn't have an LSE listing? I imagine most on-line brokers can cope with US listed shares?

Yes, they can.
BUT…
Almost all online brokers require you to submit a W-8BEN form for the US tax authorities in order to hold US shares. Legally, there is no requirement to do this, but brokers insist, because otherwise they’d have to treat some pooled nominee accounts different to others. If you haven’t submitted a W-8BEN, often they will dump your US shares instantly at market price.

So if you think you are likely to want to keep these US shares, it may well be worth submitting a W-8BEN form NOW, before it is too late. It’s free. You can usually download the form from the broker’s website. But read the guidelines carefully, because the US authorities are very picky about how you fill it in.

Gryff

[idpickering]

The boards of International Paper Company ("International Paper") and DS Smith Plc ("DS Smith") are pleased to announce that they have reached agreement on the terms of a recommended all-share combination of International Paper with DS Smith.

https://www.investegate.co.uk/announcem ... n-/8139039

Ian (No holding of either share).

[idpickering]

Statement regarding intention not to make an offer for DS Smith Plc

Mondi plc ("Mondi") notes the terms of the recommended all-share combination of International Paper Company with DS Smith Plc ("DS Smith") announced on 16 April 2024.

Following a period of due diligence, and after carefully considering the value the combination with DS Smith would deliver to Mondi's shareholders, the Mondi Board has decided that the transaction would not be in the best interests of its shareholders. Accordingly, Mondi does not intend to make an offer for DS Smith.

Mondi's Board remains confident that its compelling portfolio of sustainable packaging and paper products, scale and cost advantaged quality asset base, along with its pipeline of organic investments, ensure it is well positioned to deliver long-term structural growth in the markets in which it operates, delivering strong cash generation, attractive returns and sustainable value accretive growth for shareholders.

https://www.investegate.co.uk/announcem ... n-/8147534

SMDS are down over 12% as I type.

Ian (No holding in either company).