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Wednesday, 8 February 2012, 16:50 HKT/SGT

Source: Samson Paper Holdings Limited
Samson Paper Forms Strategic Alliance with Japanese Leading Trading Conglomerate KPP
Set to Extend Markets and Reap the Benefits from Synergies

HONG KONG, Feb 8, 2012 - (ACN Newswire) - Samson Paper Holdings Limited ("Samson Paper" or the "Group") (Stock code: 731), a vertically integrated paper trader and manufacturer in Hong Kong and the PRC, announced it has signed an agreement with Kokusai Pulp and Paper Co., Ltd. ("KPP") whereby KPP has agreed to acquire a 22.30% of the issued share capital in the Group's wholly-owned subsidiary Mission Sky Group Limited ("Mission Sky") at a consideration of US$ 38,050,975. Mission Sky currently holds a 90% interest in Universal Pulp and Paper (Shandong) Co., Ltd.* ("UPP-SD") which operates a paper mill in Shandong Province, the PRC.

Established in 1924, KPP is a Japanese trading conglomerate engaging in trading and marketing of paper and board with a strong distribution network both within Japan and internationally. Its wholly-owned subsidiary DaiEi Papers International Corporation ("DPIC") is one of the Group's major suppliers, maintaining a long-term relationship for more than 30 years.

After joining forces with the Group, KPP will further enhance the paper mill's sales network to distribute the mill's products not only to domestic markets, but also to overseas markets through KPP's international sales network. It will also help the Group secure upstream raw materials such as waste paper and chemicals at competitive costs in Japan and elsewhere through KPP's present relations. The Board also considers that the transaction will benefit the Group by enlarging its capital base and provision of funds for expanding the production capability and working capital needs, as well as enhancing the liquidity position of Samson Paper, thus fuelling its future growth.

Confident of the outcome of the agreement, Mr Dennis S.J. LEE, Deputy Chairman and CEO of Samson Paper, said, "We are extremely pleased to establish a strategic partnership with KPP, the leading Japanese paper conglomerate. KPP's well-established international distribution network delivers a substantial expansion of the market for our Group's paper products, supplementing our own extensive channels in Hong Kong and the PRC. The strengthened alliance with KPP not only enhances our competitiveness, but also enables the two companies to share resources and benefit from synergies."

Equally positive about the new pact, Mr Yasuo AKAMATSU, President of KPP, commented, "As the largest paper trading company in the PRC and Hong Kong with a fast-growing paper manufacturing business in the PRC, Samson Paper's diverse and complementary resources can help us tap the immense opportunity presented by the China market. As we are consistently looking for high quality paper products to strengthen our product range, Samson Paper's rapidly growing paper manufacturing business can help us achieve our goals. Building on a close business partnership exceeding 30 years, we are therefore confident that this strategic alliance enhanced by this transaction can mutually benefit both Samson Paper and KPP."

About Kokusai Pulp and Paper Co., Ltd

Established in 1924, KPP is a leading Japanese trading conglomerate with a strong distribution network both domestically and internationally. It has more than 20 sales offices located all over the world, including USA (Virginia and LA), South America (Sao Paulo), Asia Pacific regions (Hong Kong, Singapore, Seoul, Melbourne, Taipei, Jakarta, Manila, Bangkok, Kuala Lumpur, Penang and Ho Chi Minh), South Africa (Johannesburg), India (Bangalore, Delhi, Mumbai) and China (Shanghai). Its products include paper and board, pulp, wastepaper, packaging materials and machineries.

Strategic Financial Relations Limited
Joanne Lam / Cornia Chui
Tel:  2864 4816 / 2864 4853 
Fax:   2527 1196
Email:  joanne.lam@sprg.com.hk / cornia.chui@sprg.com.hk 
Website:  http://www.sprg.com.hk

Topic: Press release summary
Source: Samson Paper Holdings Limited

Sectors: Daily Finance, Daily News
From the Asia Corporate News Network

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