Smith (DS) PLC (SMDS) and potential takeover by Mondi PLC (MNDI).

[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

Also posted on Company News here; viewtopic.php?p=660308#p660308

SMDS are down over 12% as I type, with MNDI being up over 9%.

I know some here hold SMDS so this may be of interest here.

Ian (No holding in either company).

Moderator Message:
Minor edit to correct typo at OP's request (chas49)

[kempiejon]

Mondi price still below where they were before they considered SMDS as a takeover target. I thought Mondi was out of the running but this confirms it. SMDS value looks to be below the offer made by international paper at about £3.60 - but of course that's a function of International Paper Co share price and exchange rates.


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

[daveh]

Mondi price still below where they were before they considered SMDS as a takeover target. I thought Mondi was out of the running but this confirms it. SMDS value looks to be below the offer made by international paper at about £3.60 - but of course that's a function of International Paper Co share price and exchange rates.


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

When the offer was made it was quoted as valuing SMDS at 415p/per share. Looking at todays share price of $34.50, the takeover offer of 0.1285 IP shares for each SMDS share and a exchange rate of 1.25 I make that ~355p per share. So there must have been a significant drop in the IP share price since the offer (and or change in the exchange rate). So the price is dropping back to what I sold my unsheltered holding for at the end of March (just hours before offer was made) for CGT and dividend tax purposes.

So is the drop in IP share price due to the deal or for other unrelated reasons?

I also have to decide what to do about my sheltered holding in SMDS - sell or wait for it to turn into a holding in IP. Then do I want to hold IP bearing in mind that mine is an income portfolio.