UPM-Kymmene hopes to raise a 1.53bn (E2.5bn) loan to finance its acquisition of German paper producer Haindl Paper (PrintWeek, 1 June).
The Finnish papermaker will meet the remainder of the acquisition price of 2.1bn with the proceeds of a 300m share issue, which is conditional on completion of the takeover.
The group will seek shareholder approval for the deal at its AGM on 2 August.
The loan is being arranged by BNP Paribas, Commerzbank, JP Morgan and Nordea and will cover the cash element of the bid and refinance existing debt.
Meanwhile, UPM-Kymmene is set to rebuild paper machine eight at its Tervasaari plant. The year-long operation will see capacity of release paper at the plant increasing from 130,000 tonnes to around 180,000 tonnes a year.
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"Sorry to read this, a big name to go down, hopefully a lot of the £1.8M was insured. We are recruiting operational staff & currently in-talks to assist the clients with immediate requirements."
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