425: Smurfit Kappa Shares Suspended on Euronext Dublin Ahead of WestRock Combination

Smurfit Kappa confirms the suspension of its shares on Euronext Dublin, effective July 2, 2024, in anticipation of the completion of its combination with WestRock.

Summary

• Smurfit Kappa shares were suspended from trading on Euronext Dublin effective 5:00 p.m. (BST) on July 2, 2024.
• The suspension is related to the upcoming combination of Smurfit Kappa and WestRock, expected to be completed on July 5, 2024.
• Following the completion, Smurfit Kappa shares will be delisted from the London Stock Exchange (LSE) and Euronext Dublin, effective 8:00 a.m. (UK time) on July 8, 2024.
• Smurfit WestRock shares will be admitted to the LSE and the New York Stock Exchange (NYSE), with trading commencing at 8:00 a.m. (UK time) and 9:30 a.m. (New York City time) on July 8, 2024, respectively.
• Further announcements regarding the combination will be made in due course.
• The US Securities and Exchange Commission (SEC) declared the registration statement on Form S-4 effective on April 26, 2024.
• WestRock commenced mailing of the US Proxy Statement to WestRock Shareholders on or about May 1, 2024.

Sentiment

Score: 7

Explanation: The document is primarily informational, detailing the next steps in a previously announced merger. The sentiment is neutral to positive as it confirms the progression of the deal.

Positives

• The document confirms the expected timeline for the Smurfit Kappa and WestRock combination.
• The commencement of trading for Smurfit WestRock shares on both the LSE and NYSE is clearly communicated.

Risks

• The document contains forward-looking statements that are subject to various risks and uncertainties.
• Factors such as economic conditions, competition, regulatory changes, and potential integration challenges could impact the actual results of the combined company.
• The document mentions the risk that the Internal Revenue Service may assert that Smurfit WestRock should be treated as a US corporation or be subject to certain unfavourable US federal income tax rules under Section 7874 of the Internal Revenue Code of 1986, as amended, as a result of the Combination.

Future Outlook

The document outlines the expected completion of the combination and the subsequent listing and trading of Smurfit WestRock shares on the LSE and NYSE.

Industry Context

This announcement is part of the larger trend of consolidation in the paper and packaging industry, as companies seek to achieve greater scale and efficiency.

Stakeholder Impact

• Shareholders of Smurfit Kappa and WestRock will be impacted by the combination and the subsequent trading of Smurfit WestRock shares.
• The delisting of Smurfit Kappa shares from the LSE and Euronext Dublin will affect investors who currently hold those shares.

Next Steps

• Completion of the Combination is expected to take place on July 5, 2024.
• Delisting of Smurfit Kappa Shares from LSE and Euronext Dublin effective July 8, 2024.
• Admission of Smurfit WestRock Shares to LSE and NYSE, with trading commencing on July 8, 2024.
• Further announcements will be made in due course.

Key Dates