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Sunday 4 December 2016

Equity firms slash Smurfit stakes

Published 11/02/2011 | 05:00

Packaging giant Smurfit Kappa has confirmed that its three biggest shareholders -- private equity groups Cinven, CVC and Madison Dearborn -- have cut their stakes in the business in a move that boosts the liquidity of the shares and marks what is certainly the beginning of the equity groups' eventual exit from the firm.

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Smurfit Kappa said yesterday that Cinven and CVC, which between them own a combined stake of 24.4pc via a vehicle called Smurfit Kappa Feeder, have reduced their holding to 18.1pc. Madison Dearborn has reduced its stake from 21.5pc to 15.9pc.

The investors sold a total of 25 million shares via an institutional placing at €8.50 per share, with the transaction valued at €212m. The sale was handled by Credit Suisse and Davy. The equity groups' remaining stakes are valued at roughly €650m. Smurfit Kappa has a market capitalisation of about €1.9bn. Cinven, CVC and Madison Dearborn have consented to a 90-day lock-up in respect of their remaining stakes in the business.

Madison Dearborn acquired Jefferson Smurfit Group in 2002 and in 2005 the company merged with Kappa.

Irish Independent

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