(By Balaseshan) International Paper Co. (NYSE: IP), a global paper and packaging company, said it has closed the purchase of the shares of its joint venture partner Sabanci Holding in the Turkish corrugated packaging company Olmuksa, for $56 million.
International Paper had obtained regulatory approval for the deal in the fourth quarter of 2012. The deal sees International Paper become the majority shareholder, owning approximately 87.5% of Olmuksa's outstanding shares.
The change of control triggers a mandatory call for tender of the remaining public shares (about 12.5% float) of Olmuksa, which will be conducted in line with the regulations of the Turkish Capital Markets Board.
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The Turkish corrugated market is currently the 7th largest in Europe with expected continued average growth rates of greater than 5% annually. The country is also strategically positioned to serve as potential growth platform to the Middle-East.
"Packaging is a core business for International Paper and this deal follows our commitment to expand profitably our strong global platform and regional presence. It is an exciting opportunity to grow and serve our customers in a strategically important geography," said Maximo Pacheco, President of International Paper Europe, Middle East & Africa.
IP is trading down 0.02% at $40.48 on Thursday. The stock has been trading between $27.29 and $40.64 for the past 52 weeks.