 The private equity firm Strategic Value Partners, SVP, reiterates that it will not extend its bid for the paper mill company Nordic Paper. The company states this in a comment to Finwire.
The offer is worth SEK 50 in cash per share and expires Jan. 8.
"We are grateful for the strong support shown for the offer, where approximately 83 percent of the shares in Nordic Paper have so far been tendered in the offer. We are positive about owning Nordic Paper whether in a private or public environment. However, we are keen to ensure that all shareholders who wish to tender their shares have the opportunity to do so and therefore we have extended the acceptance period one last time until January 8 at 15.00", SVP states.
Is the timing of the acceptance period really the best - Sweden has many bank holidays and this week is affected by the Epiphany?
"As support for our offer has been so strong during the initial acceptance period, we have decided to make a second and final extension to ensure that all shareholders who wish to accept the offer have the opportunity to do so. The offer will not be extended again, which means that after January 8 at 15.00 it will no longer be possible to accept the offer."
Liquidity for Nordic Paper is weak on the stock exchange.
"We are committed to owning Nordic Paper as a majority shareholder, whether in a public or private environment. If we reach 90 percent of the total number of shares in Nordic Paper, we intend to acquire all remaining shares and work towards a delisting of the company.", SVP states and continues.
"The stock has historically shown low liquidity, even when Shanying owned 48 percent. With SVP now owning 83%, and the free float reduced by more than two thirds, it is natural that the liquidity in the stock is very limited. Shareholders who want to secure immediate value and liquidity have the option to tender their shares in the offer, which also implies a bid price slightly above the current share price."
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