International Paper Company Announces Completion of Sylvamo Corporation Spin-Off
On October 1, 2021, International Paper Company (NYSE:IP) completed the spin-off of its global printing papers business, now known as Sylvamo Corporation (NYSE:SLVM). Shareholders received one share of Sylvamo for every eleven shares of International Paper held. Post-spin-off, International Paper retains approximately 19.9% ownership in Sylvamo. The spin-off is positioned to enhance strategic focus and long-term value for both companies. Sylvamo shares began trading on NYSE under the symbol SLVM, with tax-free treatment for U.S. federal income tax purposes for stockholders.
- Successful completion of spin-off enhances strategic flexibility for both companies.
- International Paper is now positioned as a corrugated packaging-focused company, potentially increasing earnings and cash generation.
- Tax-free distribution of Sylvamo shares is beneficial for shareholders.
- None.
MEMPHIS, Tenn., Oct. 1, 2021 /PRNewswire/ -- International Paper Company (NYSE:IP) today announced the completion of its previously announced separation and spin-off of its global printing papers business, now operating as Sylvamo Corporation (NYSE: SLVM). Each International Paper shareholder received one share of Sylvamo common stock for every eleven shares of International Paper common stock held on the record date. International Paper continues to own approximately
"The spin-off enhances the strategic flexibility and focus for long-term success and value creation at both companies. International Paper is now a highly-advantaged, corrugated packaging-focused company, well-positioned to grow earnings and cash generation," said Mark Sutton, Chairman and Chief Executive Officer.
Sylvamo common stock is expected to begin "regular way" trading on the New York Stock Exchange today under the symbol "SLVM" and the CUSIP number 871332 102.
The receipt of Sylvamo common stock in the distribution is tax-free to International Paper stockholders for U.S. federal income tax purposes, except for the gain or loss attributable to cash received in lieu of fractional shares of Sylvamo common stock. International Paper shareholders are urged to consult with their tax advisors with respect to the U.S. federal, state and local or foreign tax consequences, as applicable, of the spin-off.
About International Paper
International Paper (NYSE: IP) is a leading global producer of renewable fiber-based packaging and pulp products with manufacturing operations in North America, Latin America, North Africa and Europe. We produce corrugated packaging products that protect and promote goods and enable worldwide commerce, and pulp for diapers, tissue, and other personal hygiene products that promote health and wellness. We are headquartered in Memphis, Tenn. and employ approximately 38,000 colleagues. Net sales for 2020 were
*Inclusive of our former global papers business, which became a standalone, publicly traded company on October 1, 2021.
View original content to download multimedia:https://www.prnewswire.com/news-releases/international-paper-company-announces-completion-of-sylvamo-corporation-spin-off-301389456.html
SOURCE International Paper
FAQ
When did International Paper spin off Sylvamo Corporation?
What is the stock symbol for Sylvamo Corporation?
Do International Paper shareholders receive shares of Sylvamo?
What percentage of Sylvamo does International Paper still own?
