West Coast Paper soars on buzz International Paper, IP may buy the firm, Latest stock price of West Coast & Rama Newsprint
Shares of SK Bangur-controlled West Coast PaperBSE 7.18 % ended 7.2 per cent higher at Rs 70.15 on Monday following a late spurt on higher-than average volumes amid speculation that US-based International Paper (IP) is in advanced talks to buy out the company.
Bankers close to the deal said West Coast Paper is demanding a valuation of nine to ten times the current market price from IP, which last year acquired Andhra Paper MillsBSE 1.68 % for about $425 million (about Rs 1,900 crore then). IP in 2011 paid a 205 per cent premium for the promoters' stake in AP Paper.
This deal will also help Rama Newsprint
The steep valuations in the previous deal has sparked speculation that IP would pay a premium in this deal too. A section of the market feels IP is unlikely to pay such a sharp premium.
CLICK TO CHECK THE LATEST STOCK PRICE OF WEST COAST PAPER
CLICK TO CHECK THE LATEST STOCK PRICE OF RAMA NESWPRINT
Shares of SK Bangur-controlled West Coast PaperBSE 7.18 % ended 7.2 per cent higher at Rs 70.15 on Monday following a late spurt on higher-than average volumes amid speculation that US-based International Paper (IP) is in advanced talks to buy out the company.
Bankers close to the deal said West Coast Paper is demanding a valuation of nine to ten times the current market price from IP, which last year acquired Andhra Paper MillsBSE 1.68 % for about $425 million (about Rs 1,900 crore then). IP in 2011 paid a 205 per cent premium for the promoters' stake in AP Paper.
This deal will also help Rama Newsprint
The steep valuations in the previous deal has sparked speculation that IP would pay a premium in this deal too. A section of the market feels IP is unlikely to pay such a sharp premium.
CLICK TO CHECK THE LATEST STOCK PRICE OF WEST COAST PAPER
CLICK TO CHECK THE LATEST STOCK PRICE OF RAMA NESWPRINT
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