Verso gets shareholders’ approval for $825m acquisition by BillerudKorsnäs
Shareholders of Verso Corporation, an Ohio-based producer of graphic, specialty and packaging paper and market pulp, have voted in favor of the company’s $825 million acquisition by BillerudKorsnäs, a Swedish pulp and paper manufacturer.
The all-cash deal, which was announced in December 2021, aims to create one of the largest providers of virgin fiber paper and packaging.
During a special meeting of Verso Corporation’s stockholders, the merger proposal was backed by nearly 98.5% of votes, which represent around 73% of outstanding shares of the company’s common stock.
Verso and BillerudKorsnäs currently anticipate closing the merger in late March or April of this year, subject to the meeting of customary conditions, which include approvals from the Nuclear Regulatory Commission and the Public Service Commission of Wisconsin.
As per the terms of the deal, BillerudKorsnäs has offered $27 per share to shareholders of the publicly-listed Verso.
Post-acquisition, BillerudKorsnäs intends to convert Verso’s Escanaba mill into a fully integrated paperboard production facility. One of the machines at the Escanaba paper mill is expected to be converted by 2025 while another is planned to be converted by 2029.
The conversions of the machines will result in a total capacity of nearly 1,100 ktonnes.
BillerudKorsnäs expects the investment for the conversion project to be up to SEK 9 billion ($923 million).