Verso Corporation Provides Update on Discussions with Atlas Holdings

Rhea-AI Summary

Verso Corporation (NYSE: VRS) announced a Confidentiality Agreement with Atlas Holdings LLC to explore a potential acquisition. The company’s Special Committee has determined that Atlas's initial offer of $20.00 per share is insufficient and seeks a higher bid. Both parties will exchange information to facilitate discussions on acceptable terms. However, Verso cautions that there are no guarantees of future negotiations or a completed transaction. Investors are advised that no action is necessary at this time.

Positive

• Verso Corporation is engaged in discussions with Atlas Holdings, indicating interest in potential acquisition.
• The Special Committee is actively negotiating, suggesting strategic efforts to enhance shareholder value.

Negative

• Atlas's initial offer of $20.00 per share was deemed insufficient, indicating potential undervaluation.
• There is no assurance that negotiations will lead to a transaction, introducing uncertainty for shareholders.

MIAMISBURG, Ohio, Sept. 21, 2021 /PRNewswire/ -- Verso Corporation (NYSE: VRS) ("Verso" or "the Company") today announced that it has entered into a Confidentiality Agreement (the "Agreement") with Atlas FRM LLC (d/b/a Atlas Holdings LLC) ("Atlas"). The special committee (the "Special Committee") of the Board of Directors of Verso previously communicated to Atlas its determination, made in consultation with its financial and legal advisors, that Atlas' previously disclosed $20.00 per share all-cash offer to acquire Verso was insufficient and that the Special Committee would only consider a potential transaction if Atlas meaningfully increased its offer from $20.00. The two parties agreed to exchange additional information under the terms of the Agreement to facilitate ongoing discussions regarding a potential transaction with Atlas on mutually acceptable terms.

There can be no assurance that any negotiations between Verso and Atlas will take place following the exchange of additional information, and if such negotiations do take place, there can be no assurance that any transaction with Atlas (or any other party) will occur or be consummated. Verso does not intend to comment on or disclose further developments regarding the Special Committee's evaluation unless and until it deems further disclosure is appropriate or required.

Verso stockholders do not need to take any action at this time.

Rothschild & Co is acting as financial advisor and Kirkland & Ellis LLP is serving as legal counsel to the Special Committee.

About Verso Corporation
Verso Corporation is a leading American owned and operated producer of graphic, specialty and packaging paper and market pulp, with a long-standing reputation for quality and reliability. Verso's graphic paper products are designed primarily for commercial printing, advertising and marketing applications, including direct mail, catalogs, corporate collateral, books and magazines. Verso's specialty paper products include release liner papers and label face stock for pressure sensitive, glue-applied and laminate applications. Verso produces packaging paper used in higher-end packaging and printing applications such as greeting cards, book covers, folders, labels and point-of-purchase displays. Verso also makes market pulp used in printing, writing, specialty and packaging papers, facial and toilet tissue, and paper towels. For more information, visit us online at versoco.com.

Forward-Looking Statements
In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include information regarding the unsolicited acquisition proposal and the response thereto, and other forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "intend," "potential" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial, and other information and reflect management's current beliefs, expectations, and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. Verso's actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including uncertainties as to whether an agreement relating to any possible transaction will be negotiated and executed, uncertainties as to whether any possible transaction will be completed and the other risks and uncertainties listed in Verso's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, filed with the Securities and Exchange Commission ("SEC") on August 6, 2021, and Verso's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021, as such risks and uncertainties may be updated from time to time in Verso's other filings with the SEC. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

 

 

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SOURCE Verso Corporation

FAQ

What is the current status of Verso Corporation's acquisition discussions with Atlas Holdings?

Verso Corporation has entered a Confidentiality Agreement with Atlas Holdings to explore a potential acquisition after deeming Atlas's $20.00 per share offer insufficient.

What is the offer price per share from Atlas to acquire Verso Corporation?

Atlas Holdings has made an offer of $20.00 per share to acquire Verso Corporation.

Is Verso Corporation's Special Committee considering Atlas's acquisition proposal?

Yes, the Special Committee of Verso Corporation is considering Atlas's proposal but requires a higher offer to move forward.

Do Verso Corporation shareholders need to take action regarding the acquisition proposal?

No, Verso Corporation stockholders do not need to take any action at this time.

Who is advising Verso Corporation on the acquisition discussions?

Rothschild & Co is acting as the financial advisor, and Kirkland & Ellis LLP is serving as legal counsel to Verso's Special Committee.