London Calling: International Paper Eyes Secondary listing As Part Of Proposed DS Smith Combination
Portfolio Pulse from Lekha Gupta
International Paper Company (NYSE:IP) is considering a secondary listing on the London Stock Exchange as part of its proposed combination with DS Smith plc (OTC:DITHF). The combination is expected to generate significant synergies, with pre-tax cash synergies of at least $514 million annually by the fourth year. This move is seen as a strategic effort to strengthen International Paper's packaging businesses in North America and Europe, and is expected to be immediately accretive to EPS. Investors can also gain exposure to International Paper through IShares Global Timber & Forestry ETF (NASDAQ:WOOD) and Invesco MSCI Global Timber ETF (NYSE:CUT).
April 04, 2024 | 4:36 pm
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POSITIVE IMPACT
Invesco MSCI Global Timber ETF (NYSE:CUT) provides investment exposure to International Paper, which is poised for growth from its strategic combination with DS Smith.
CUT ETF, by holding International Paper, stands to gain from the anticipated positive impacts of International Paper's combination with DS Smith, including the expected synergies and EPS accretion.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
DS Smith's involvement in the proposed combination with International Paper is expected to create value for shareholders through significant synergies.
DS Smith's collaboration with International Paper in this strategic combination is poised to unlock substantial value through operational efficiencies and synergies, positively impacting shareholder value.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
International Paper's proposed combination with DS Smith and secondary listing on the London Stock Exchange is expected to generate significant synergies and be immediately accretive to EPS.
The strategic combination with DS Smith and the secondary listing are likely to enhance International Paper's market position and financial performance, making it an attractive investment. The anticipated synergies and EPS accretion signal strong future profitability.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
IShares Global Timber & Forestry ETF (NASDAQ:WOOD) offers investors exposure to International Paper, which is expected to see growth from its proposed combination with DS Smith.
As WOOD ETF includes International Paper in its holdings, the positive outlook on International Paper's growth and synergies from the DS Smith combination could indirectly benefit WOOD's performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70