LONDON (dpa-AFX) - DS Smith Plc (SMDS.L) unveiled the proposed acquisition of the packaging division of Svenska Cellulosa Aktiebolaget SCA (SVCBY.PK), excluding the kraftliner assets, for a net consideration of around 1.6 billion euros. The gross price will be 1.7 billion euros on a cash, debt and, to the extent legally possible and commercially practicable, pension free basis and approximately 1.6 billion euros on a net basis after taking into account a pension price adjustment. DS Smith proposes to finance the acquisition with existing and additional debt and a fully underwritten Rights Issue of 9 New Ordinary Shares for every 8 Existing Ordinary Shares at 95 pence each to raise a total of approximately 466 million pounds. DS Smith expects that the acquisition, if completed, will add value for DS Smith Shareholders by substantially enhancing DS Smith's earnings per share. The deal is also expected to offer an expected return on capital above DS Smith's weighted average cost of capital for the first full financial year of ownership with further improvement in the second and third full financial years. It is currently expected that the acquisition will complete during the second quarter of calendar 2012.
Copyright RTT News/dpa-AFX
