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Sappi has finalised the terms of its proposed rights offer to facilitate the acquisition of the coated graphic paper business of M-real, as announced on 29 September 2008. This follows receipt of shareholder approval for the acquisition on 03 November 2008 and competition clearance from the European Commission on 31 October 2008.
Sappi is seeking to raise approximately ZAR5,815 million (€450 million based on an exchange rate of ZAR12.925/€) through a fully underwritten renounceable rights offer of 286,886,270 new ordinary shares of ZAR1.00 each. The subscription price will be ZAR20.27 per rights offer share and be issued in the ratio of 6 rights offer shares for every 5 Sappi shares held. The subscription price is at a discount of 65.2% to the closing price of Sappi ordinary shares on 6 November 2008 of ZAR58.25, at a discount of 46.0% to the theoretical ex-rights price of a Sappi...