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International Paper To Exit Chinese Coated Board Joint Venture

The following excerpt is from the company's SEC filing.

Also Pursuing Strategic Options for Asian Corrugated Box Business

Will Continue to Supply Asian Markets with Globally Competitive Products

MEMPHIS, Tenn. October 8, 2015

International Paper (NYSE: IP) today announced that it has entered into a definitive agreement with its Chinese coated board joint venture partner, Shandong Sun Holding Group Co., Ltd., to sell its 55% equity interest in the joint venture (IP-Sun JV). As consideration for the sale, the Company will receive RMB 149 million (or approximately US$23 million) in cash. Additionally, the Company will remove approximately $400 mi llion of currently outstanding debt from the Companys balance sheet, along with the other assets and liabilities of the IP-Sun JV, following completion of the transaction. International Paper also announced today that it is pursuing strategic options for its corrugated box business in China and South East Asia and has signed a non-binding letter of intent with a prospective buyer based in China.

International Paper undertook a thorough review of its position in serving the Chinese and Asian markets, said Mark Sutton, International Paper Chairman and CEO. The Company remains committed to serving these very important markets, but concluded we could be more effective supplying this region with globally competitive products primarily through our Ilim joint venture in Russia and from the U.S.

The IP-Sun JV transaction is expected to be completed within the next six months...