JSE-listed pulp and paper company Sappi says the intended sale to investment management company Aurelius Group of its Maastricht Mill, in the Netherlands, its Stockstadt Mill, in Germany, and its Kirkniemi Mill, in Finland, has not materialised within the agreed timeframe of the contractual agreement and, therefore, the agreement has lapsed.
“Regretfully, and despite extensive efforts by Sappi to close the transaction, the parties could not agree on fulfilling the suspensive conditions. Therefore, the transaction has lapsed, says Sappi CEO Steve Binnie.
“Sappi’s strategic focus remains unchanged. This includes reducing exposure to the graphic paper segment, while expanding Sappi’s presence in segments including packaging and speciality papers, pulp and biomaterials,” he comments.
“Sappi Europe will continue to manage the three mills as part of our overall portfolio, ensuring they continue delivering value to the region and to the customers they supply,” Sappi Europe CEO Marco Eikelenboom adds.
The Maastricht Mill produces 260 000 t/y of coated woodfree paper and paperboard mainly sold to printers and packaging converters globally.
The Stockstadt Mill is an integrated pulp and paper mill, producing 145 000 t/y of pulp, which is used to produce 220 000 t/y of coated and uncoated woodfree paper that is mainly sold into the European print market.
Further, the Kirkniemi Mill is an integrated pulp and paper mill, producing 300 000 t/y of bleached mechanical pulp, which is used to produce about 750 000 t/y of a variety of coated mechanical paper grades used in the print publication industry globally.