Bilt Paper’s $330 mn London IPO plans on hold

Bilt Paper’s $330 mn London IPO plans on hold

New Delhi: US-based International Paper bid to acquire Bangur Group’s Andhra Pradesh Paper Mills or APPM for $423 million has forced Gautam Thapar owned Bilt Paper Plc to rethink on its decision to list on London’s premium exchange.

The company informed the stock exchanges about a probable re-rating of the Indian paper industry, which will help them fetch better valuations on LSE. The company will list in a few months.

The public offer from the Avantha group company, to raise $330 million, was supposed to be held by 20 April, the company officials had informed media in a telecon held on 22 March. The company was looking at being included in FTSE 200 index on listing.

The company now wants to extract maximum value for the company by studying the impact o the acquisition valuation over the next few months and explore rerating possibilities for the London IPO.

“Throughout this process, the transaction has seen considerable interest and engagement from institutional investors in the UK, Europe and the

United States. However, there was an acquisition announcement this week by

International Paper in the Indian market, which the company believes will set a benchmark for the valuation of the paper companies in India and may possibly rerate the Indian paper industry," the company said in its release.