Mumbai-based papermaker eyes possible Catalyst Paper acquisition
A group of investors that hold a majority stake in Catalyst Paper Corp., the Canadian-based owner of the Rumford Catalyst Paper Holdings mill, have agreed to a possible acquisition of the company by Mumbai-based Kejriwal Group International.
In a news release announcing the proposed transaction, Catalyst officials said that Kejriwal would acquire shares from investors that total a 79% stake in the company. Kejriwal also agreed to purchase Catalyst at a price of approximately $6 per share (Canadian).
In the release about the letter of intent, Catalyst wrote: “The board of directors has indicated that it is encouraged by KGI's proposal, which could provide the company with a significant amount of capital which further enhances and accelerates Catalyst's planned growth initiatives.”
As part of the proposal, Kejriwal would be required to make $60 million in investments in Catalyst, with $20 million invested on the closing of the deal, $5 million within six months after and $35 million within the first year of the possible acquisition becoming official.
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