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Mondi considers possible all-share combination with DS Smith

Mondi considers possible all-share combination with DS Smith

Mondi confirms that it is in the early stages of considering a possible all share combination with DS Smith. Mondi routinely considers various options within its disciplined capital allocation framework aimed at accelerating its growth in the structurally growing packaging sectors in which it operates.

Mondi believes that a possible all share combination with DS Smith represents an exciting opportunity to create an industry leader in European paper-based sustainable packaging solutions:

  • well positioned to benefit from structural growth trends in sustainable packaging;
  • benefitting from enhanced vertical integration, bringing with it a balanced paper position, greater earnings resilience through the cycle and enhanced security of paper supply, for the benefit of both shareholders and customers
  • benefitting from substantial synergies as a result of vertical integration alongside highly complementary positions and expertise in containerboard, corrugated solutions and flexible packaging, in addition to expected benefits from economies of scale and efficiencies across a combined supply chain and administration.

Mondi’s strategy is to deliver value accretive growth and, as noted above, adopts a disciplined approach to acquisitions and investment within its capital allocation framework. Any transaction with DS Smith would be assessed against this framework. Mondi remains committed to maintaining a strong and stable financial position supported by a solid investment grade credit rating and a dividend policy aimed at offering shareholders long-term dividend growth within the context of its stated cover policy.

There can be no certainty that an offer will be made to acquire DS Smith.

In accordance with Rule 2.6(a) of the Code, Mondi is required, by not later than 5.00 p.m. on 7 March 2024, to either announce a firm intention to make an offer for DS Smith in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for DS Smith, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

This deadline can only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code. For the purposes of Rule 2.5(a) of the Code, Mondi reserves the right to vary the form and mix of the consideration and/or introduce other forms of consideration.

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