425: Smurfit Kappa to Suspend Trading on Euronext Dublin Ahead of WestRock Combination

Smurfit Kappa plans to suspend trading on Euronext Dublin on July 2, 2024, in anticipation of the completion of its merger with WestRock to form Smurfit WestRock.

Summary

• Smurfit Kappa intends to cancel its secondary listing on Euronext Dublin.
• The cancellation is expected to take effect on Monday, July 8, 2024, at 8:00 a.m.
• This action follows the anticipated completion of the combination with WestRock Company to create Smurfit WestRock.
• The completion is subject to shareholder approval and other closing conditions, and is expected to occur on July 5, 2024.
• The last day of trading for Smurfit Kappa's ordinary shares on Euronext Dublin will be Tuesday, July 2, 2024.
• Trading will be suspended from 5:00 p.m. on July 2, 2024, to allow for settlement of trades.
• Smurfit WestRock's ordinary shares will trade on the New York Stock Exchange (NYSE) starting at 9:30 a.m. (New York City Time) on Monday, July 8, 2024.
• Smurfit WestRock's shares will also be admitted to the standard listing segment of the Official List of the Financial Conduct Authority and commence trading on the main market of the London Stock Exchange (LSE) at 8:00 a.m. on Monday, July 8, 2024.
• Any changes to this timeline will be announced through a Regulatory Information Service.
• Further announcements will be made as appropriate.

Sentiment

Score: 7

Explanation: The announcement is generally positive, outlining the next steps in a major merger. While there are inherent risks in any merger, the tone is confident and forward-looking.

Positives

• The creation of Smurfit WestRock is progressing as planned, with key milestones being met.
• Shareholders will soon have the opportunity to trade Smurfit WestRock shares on major exchanges like the NYSE and LSE.

Negatives

• Smurfit Kappa shareholders trading on Euronext Dublin will no longer be able to trade those shares after July 2, 2024.
• The timeline is subject to change, which could cause uncertainty for investors.

Risks

• The completion of the combination is subject to shareholder approval and satisfaction of other closing conditions, which introduces uncertainty.
• Changes to the timeline are possible, which could disrupt investor expectations.
• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.

Future Outlook

The document outlines the expected timeline for the completion of the combination between Smurfit Kappa and WestRock, including the suspension of trading on Euronext Dublin and the commencement of trading of Smurfit WestRock shares on the NYSE and LSE.

Industry Context

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

Comparison to Industry Standards

• Similar mergers in the packaging industry, such as the merger of International Paper and Temple-Inland, have resulted in significant market consolidation.
• The dual listing on the NYSE and LSE is a common strategy for large, multinational corporations to attract a broader investor base.

Stakeholder Impact

• Shareholders of Smurfit Kappa will receive shares in Smurfit WestRock.
• Shareholders trading on Euronext Dublin will need to adjust their trading strategies.
• The combined company will have a larger global presence, potentially impacting employees and customers.

Next Steps

• Shareholder approval for the combination.
• Satisfaction of other closing conditions.
• Commencement of trading of Smurfit WestRock shares on the NYSE and LSE.
• Further announcements as appropriate.

Key Dates