Mondi Plc has announced its decision not to make an offer for DS Smith Plc following a period of due diligence and careful consideration of the value the combination with DS Smith would deliver to Mondi's shareholders. The Mondi Board has determined that the transaction would not be in the best interests of its shareholders. The company remains confident in its sustainable packaging and paper products, scale, cost-advantaged quality asset base, and pipeline of organic investments, positioning it well for long-term structural growth and delivering strong cash generation, attractive returns, and sustainable value accretive growth for shareholders.
The announcement falls under Rule 2.8 of the City Code on Takeovers and Mergers and contains inside information. Mondi reserves the right to set the restrictions in Rule 2.8 of the Takeover Code aside in certain circumstances, including if the offer by International Paper Company is withdrawn or lapses with the agreement of the Board of DS Smith, if a third party announces a firm intention to make an offer for DS Smith, if DS Smith announces a Rule 9 waiver or a reverse takeover, or if there has been a material change of circumstances.
The company has provided contact information for investor/analyst and media inquiries and disclosed that a copy of the announcement will be available on its website by a specified date. The announcement has been prepared for the purposes of complying with English law and the Takeover Code, and the release, publication, or distribution of the announcement in jurisdictions outside the United Kingdom may be restricted by law.
Mondi Plc's decision not to make an offer for DS Smith Plc is based on the determination that the transaction would not be in the best interests of its shareholders. The company remains confident in its position for long-term growth and delivering value to its shareholders.