09-May-2013
(C) | |
15-Apr-2013
(Official Notice) | Sappi Southern Africa (Pty) Ltd. announced that on 16 April 2013 it will issue R255 000 000 Senior Unsecured Floating Rate Notes due 16 April 2016 (the SSA04 Notes), R500 000 000 Senior Unsecured Floating Rate Notes due 16 April 2018 (the SSA05 Notes) and R745 000 000 Senior Unsecured 8.06% Fixed Rate Notes due 16 April 2020 (the SSA06 Notes) (the SSA04 Notes, the SSA05 Notes and the SSA06 Notes collectively the Notes or the Issue) which collectively amount to R1 500 000 000 under its R5 000 000 000 Domestic Medium Term Note Programme dated 22 June 2011. The Notes will be listed on the Interest Rate Market of the JSE Ltd.
The proceeds of the Notes issued will be used to repay the maturing R1 000 000 000 SMF 1 bond in June 2013, and the remainder will be used to fund a portion of the dissolving wood pulp conversion project at the Ngodwana Mill near Nelspruit. |
27-Feb-2013
(Official Notice) | Sappi announced that Mr Robert (Bob) J DeKoch will join the board as an independent non-executive director as from 01 March 2013. |
06-Feb-2013
(Official Notice) | Sappi's annual general meeting was held in Johannesburg this afternoon (06 February 2013) and all resolutions as proposed at the meeting were duly passed by the respective requisite majorities. |
06-Feb-2013
(C) | |
20-Dec-2012
(Official Notice) | Having reached Sappi's mandatory retirement age for non-executive directors, Professor M Feldberg will retire from the Sappi board on 31 December 2012. He will be succeeded as Lead Independent Director, by Sir Nigel Rudd, who has been a director of Sappi for more than six years. |
11-Dec-2012
(Official Notice) | PE Paper Escrow GmbH ("PE Paper"), a wholly-owned subsidiary of Sappi, announced the final results of its offer to purchase for cash (the "Tender Offer") any and all of its outstanding euro-denominated 11.75% Senior Secured Notes due 2014 (the "Notes") and solicitation of consents to proposed amendments to the indenture governing the Notes pursuant to an Offer to Purchase and Consent Solicitation Statement dated November 9, 2012 (the "Offer to Purchase"). The Tender Offer expired at 12:00 midnight, New York City time on December 10, 2012 (the "Expiration Time").
As previously announced, as of 5:00 p.m., New York City time, on November 21, 2012 (the "Consent Payment Deadline"), holders of EUR23 476 018.80 aggregate principal amount of the Notes had validly tendered and not validly withdrawn their Notes in the Tender Offer and consented to the proposed amendments to the indenture governing the Notes as set forth in the Offer to Purchase. As of the Expiration Time, additional Notes in an aggregate principal amount of EUR54 393.00 were validly tendered in the Tender Offer. On November 23, 2012, PE Paper accepted for purchase all Notes that had been validly tendered and not validly withdrawn prior to the Consent Payment Deadline for a purchase price of EUR1 058.75 per EUR1 000 principal amount of Notes plus the consent payment of EUR7.50 per EUR1 000 principal amount of Notes. Payment for such Notes accepted for purchase was made on November 26, 2012 and the proposed amendments to the indenture governing the Notes became operative on such date.
PE Paper has accepted for purchase EUR54 393.00 in aggregate principal amount of Notes validly tendered between the Consent Payment Deadline and the Expiration Time. Such holders whose Notes are accepted for purchase by us are eligible to receive a tender offer consideration of EUR1 058.75 per EUR1 000 principal amount of Notes, plus accrued and unpaid interest up to, but not including the Settlement Time (as defined below). On November 23, 2012, PE Paper exercised its option to redeem the remaining outstanding Notes not purchased in the Tender Offer. The remaining outstanding Notes will be redeemed on December 24, 2012 (the "Redemption Date") at a redemption price of 105.875% of the principal amount of each Note redeemed, plus accrued and unpaid interest up to, but not including, the Redemption Date. |
10-Dec-2012
(Official Notice) | Shareholders were advised that the integrated report for the year ended September 2012 will be despatched to shareholders commencing on 19 December 2012. The integrated report will also be available online on 10 December 2012 on the Sappi website (www.sappi.com ). The audited annual financial statements included in the integrated report contain no material modifications to the reviewed preliminary results for the year ended September 2012 which were published on 8 November 2012. Sappi intends to file its annual report on Form 20-F with the United States Securities and Exchange Commission on 10 December 2012. Once filed, this document will also be available on www.sappi.com
Notice of annual general meeting
Notice was given that the annual general meeting of shareholders of Sappi will be held at the registered office of the company in the Auditorium, ground floor, 48 Ameshoff Street, Braamfontein, Johannesburg, South Africa on Wednesday, 6 February 2013 at 14:00 to transact business as stated in the notice of the annual general meeting forming part of the annual financial statements. |
23-Nov-2012
(Official Notice) | PE Paper Escrow GmbH, a wholly-owned subsidiary of Sappi, announced that it has accepted for purchase EUR23 476 018.80 in aggregate principal amount of its outstanding euro- denominated 11.75% Senior Secured Notes due 2014 (the "Notes"), validly tendered and not validly withdrawn on or prior to 5:00 p.m., New York City time, on November 21, 2012 (the "Consent Payment Deadline"), in connection with its previously announced offer to purchase for cash any and all of its outstanding Notes (the "Tender Offer") and solicitation of consents (the "Consents") from holders of the Notes ("Holders") (the "Consent Solicitation", and together with the Tender Offer, the "Offer"), pursuant to an Offer to Purchase and Consent Solicitation Statement dated November 9, 2012 (the "Offer to Purchase"). |
22-Nov-2012
(Official Notice) | PE Paper Escrow GmbH a wholly-owned subsidiary of Sappi Limited, announces that it has received, on or prior to 5:00 p.m., New York City time, on November 21, 2012 (the Consent Payment Deadline), tenders and consents from holders (Holders) of approximately 75.72% of the aggregate principal amount of its outstanding euro-denominated 11.75% Senior Secured Notes due 2014 (the Notes), in connection with its previously announced offer to purchase for cash any and all of its outstanding Notes (the Tender Offer) and solicitation of consents (the Consent) from Holders (the Consent Solicitation, and together with the Tender Offer, the Offer), pursuant to an Offer to Purchase and Consent Solicitation Statement dated November 9, 2012 (the Offer to Purchase).
The Offer will expire at 12:00 midnight, New York City time, on December 10, 2012, unless extended (the Expiration Time). Holders who validly tender their Notes and validly deliver their Consents after the Consent Payment Deadline and on or prior to the Expiration Time, and whose Notes are accepted for purchase by us, will be eligible to receive the Tender Offer Consideration of ?1,058.75 per ?1,000 principal amount of Notes tendered, plus accrued and unpaid interest up to, but not including, the Settlement Time. Notes tendered and Consents delivered after the Consent Payment Deadline and prior to the Expiration Time may not be withdrawn and revoked, except as provided by law.
The complete terms and conditions of the Offer are set forth in the Offer to Purchase that was previously furnished to Holders. Holders are urged to read the Offer to Purchase carefully before making any decision with respect to the Offer. Copies of the Offer to Purchase may be obtained from the Tender and Information Agent, DF King Worldwide, at +44 20 7920 9700 and at sappi@king-worldwide.com or from the dealer manager for the Offer, J.P. Morgan Securities plc, at +44 20 7134 3166.
|
09-Nov-2012
(Official Notice) | |
08-Nov-2012
(C) | |
25-Sep-2012
(Official Notice) | Sappi Alfeld Mill to refocus production to meet strong growth in demand from the Release Liner and Flexpack paper markets. Coated paper production to be moved to other Sappi Mills in Europe. In response to strong growth and positive market forecasts for the packaging market, Sappi Fine Paper Europe has begun the process of converting its Sappi Alfeld Mill in Germany to focus exclusively on producing one-sided coated paper for packaging, labels and technical applications. The project will take 12 months to complete.
At the same time, Sappi will actively manage its graphic paper capacity by transferring the current coated paper production of the Sappi Alfeld Mill to other Sappi Mills in Europe in close consultation with these customers. This action will further improve Sappi?s cost position in coated woodfree paper in Europe and elsewhere. The strong growth and improved margins in this market are due to the growth in the demand for paper packaging and a lack of standardization; high degree of customization; and the long qualification times imposed by customers. Sappi has also been successful in the Fine Paper Europe development of innovative and sustainable solutions for this market in close cooperation with end-use customers and converters.
The decision will entail the conversion of paper machine number 2 (PM2) from producing 150,000 tons of coated fine paper per annum to producing 135,000 tons per annum of speciality paper. Paper machines 1, 3, 4 and 5 at Sappi Alfeld Mill already produce jointly 165,000 tons of speciality paper and board per year. Once the conversion is complete, the Sappi Alfeld Mill will benefit from increased margins, improved quality, increased efficiencies on raw material consumption and an optimized fixed cost profile. The mill will become the biggest and lowest cost producer of these one- sided coated speciality grades globally; with the converted PM2 the fastest and most productive speciality machine in the world. The PM2 product range will focus on one- sided coated grades from 40 -180gsm for packaging, technical purposes, liner and label applications. |
08-Aug-2012
(Official Notice) | Sappi concluded an agreement to sell its entire 34% shareholding in the Jiangxi Chenming Paper Company Ltd., situated in Nanchang City, Jiangxi Province, China, for USD41.58 million to the Shandong Chenming Paper Holding Company.
The implementation of the transaction is subject to various Chinese regulatory approvals, which it is anticipated will be achieved before Sappi's financial year end on 30 September 2012. |
06-Aug-2012
(Media Comment) | According to Business Report, Sappi proposes to spend almost USD200 million (ZAR1.6 billion) in the fourth quarter largely on chemical cellulose expansion as the company aims for faster-growing markets. Ralph Boettger, CEO, said the conversion of the Cloquet mill in Minnesota, to manufacture chemical cellulose and the development of the Ngodwana mill in Mpumalanga were well under way and would be in operational in the third quarter of 2013. |
03-Aug-2012
(C) | |
19-Jul-2012
(Official Notice) | |
05-Jul-2012
(Official Notice) | PE Paper Escrow GmbH (PE Paper) announced that, pursuant to its previously announced cash tender offer (the offer) for up to USD700,000,000 aggregate principal amount of its outstanding US dollar-denominated 12.00% senior secured notes due 2014 (the dollar notes) and euro-denominated 11.75% senior secured notes due 2014 (the euro notes and, together with the dollar notes, the notes), pursuant to an offer to purchase statement dated 20 June 2012, as amended on 21 June 2012 (offer to purchase), notes with the aggregate principal amount were validly tendered and not validly withdrawn on or prior to 5:00 pm, New York City time, on 3 July 2012 (the early tender deadline) according to information provided by The Bank of New York Mellon, the depositary for the offer.
The offer is scheduled to expire at midnight, New York City time, on the night of 18 July 2012, unless extended (the expiration time). As further explained in the offer to purchase, PE Paper will, subject to the terms and conditions of the offer to purchase, accept for purchase notes in accordance with the acceptance priority level. If there are sufficient remaining funds to purchase some, but not all, of the euro notes, the amount of euro notes will be prorated as further described in the offer to purchase.
PE Paper has accepted for purchase USD167 342 000 in aggregate principal amount of dollar notes validly tendered and not validly withdrawn prior to or at the early tender deadline. The company expects to make payment for such dollar notes accepted for purchase on 6 July 2012 (the early settlement time), including payment of accrued and unpaid interest on such dollar notes up to, but not including, the early settlement time. PE Paper has issued a notice of redemption for all of the outstanding dollar notes as of the redemption date and a notice of redemption for 140,000,000 in an aggregate principal amount of euro notes. |
21-Jun-2012
(Official Notice) | Further to Sappi's announcement on 20 June 2012 in connection with a bond issue, Sappi announced that it priced its upsized bond offering to raise USD700 million of new senior secured notes. The new notes will consist of USD400 million notes due 2017 with a coupon of 7.750% per annum and USD300 million notes due 2019 with a coupon of 8.375% per annum. The net proceeds of the offering, together with cash on hand, will be used to refinance USD700 million equivalent in aggregate principal amount of senior secured notes due 2014, issued by PE Paper Escrow GmbH, another subsidiary of Sappi. |
21-Jun-2012
(Official Notice) | |
20-Jun-2012
(Official Notice) | PE Paper Escrow GmbH ("PE Paper", "we", "us", or the "Company"), a wholly-owned subsidiary of Sappi Papier Holding GmbH ("SPH"), announced the commencement of an offer to purchase for cash (the "Tender Offer") up to USD300 000 000 aggregate principal amount (the "Maximum Tender Amount") of PE Paper's outstanding U.S. dollar-denominated 12.00% Senior Secured Notes due 2014 (the "Dollar Notes") and euro-denominated 11.75% Senior Secured Notes due 2014 (the "Euro Notes" and, together with the Dollar Notes, the "Notes"). The Offer is being made upon the terms and subject to the conditions set forth in the offer to purchase statement dated June 20, 2012 (as it may be amended or supplemented from time to time, the "Offer to Purchase") and in the related letter of transmittal (as it may be amended or supplemented from time to time, the "Letter of Transmittal" and, together with the Offer to Purchase, the "Offer Documents"). Capitalised terms used in this announcement have the meanings ascribed to them in the Offer to Purchase. The Notes will be purchased according to the Acceptance Priority Level (as defined below) set forth in the table below. All Notes having a higher Acceptance Priority Level will be accepted for purchase before any tendered Notes having a lower Acceptance Priority Level are accepted. The amounts in cash to be paid for the tender of Notes for each USD1 000 principal amount of Dollar Notes accepted for purchase and for each EUR1 000 principal amount of Euro Notes accepted for purchase are set forth in the table below. In addition, we will pay accrued and unpaid interest ("Accrued Interest") up to, but not including, the Early Settlement Time (as defined below) or the Settlement Time (as defined below), as applicable. |
20-Jun-2012
(Official Notice) | Sappi announced the offering of USD300 million aggregate principal amount of senior secured notes due 2017, in an offering that is exempt from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"). The notes will be issued by Sappi Papier Holding GmbH, a subsidiary of Sappi. The net proceeds from this offering, together with cash on hand, will be used to refinance USD300 million equivalent in aggregate principal amount of senior secured notes due 2014, issued by PE Paper Escrow GmbH, another subsidiary of Sappi. |
10-May-2012
(C) | Sales for the interim period fell to USD3.2 billion (2011: USD3.7 billion). Gross profit lowered to USD433 million (2011: USD464 million), but operating profit increased to USD227 million (2011: USD120 million), while profit for the period staged a turnaround to USD103 million (2011: loss of USD37 million). Furthermore, headline earnings per share grew to USD18cps (2011: USD5cps).
Outlook
Sappi expects demand for their coated paper to remain challenging compared to last year, but for most major input costs to remain below the levels seen a year ago. The European and South African businesses will benefit from the restructuring actions taken in these regions. The Southern African chemical cellulose business is expected to continue to perform well. The conversion projects at Ngodwana and Cloquet mills are on track for start-up in our third financial quarter of 2013. Sappi has received good support from a range of customers for the future increase in production volumes. The third financial quarter is historically and seasonally the weakest quarter, and will be further impacted, as it was last year, by planned annual maintenance shuts at a number of the group's major pulp mills. These shuts will result in an increase in maintenance costs and lost contribution from reduced output and sales. The company expects their operating profit excluding special items for the third financial quarter to be in line with the equivalent quarter last year. For the full year Sappi expect operating profit excluding special items to be in line with the previous financial year, and for the group to generate positive earnings per share. The group expect positive cash generation for the balance of the year, leading to a further reduction in net debt. Sappi will consider refinancing their higher cost debt, including the bonds due in 2014, when market conditions are favourable and it makes economic sense to do so. |
08-Feb-2012
(Official Notice) | Sappi's annual general meeting was held in Johannesburg on 08 February 2012 and all resolutions as proposed at the meeting were duly passed by the respective requisite majorities. |
08-Feb-2012
(C) | |
10-Nov-2011
(Official Notice) | Sappi announced the approval of a USD170 million capital project to convert the kraft pulp mill in Cloquet, Minnesota to chemical cellulose used in textile and consumer goods markets. The planned conversion is slated to come online in 2013 and once complete will allow the production of 330 000 metric tons of chemical cellulose per year. Approved capital plans also call for a USD13 million project to upgrade coated paper manufacturing at the Sappi Somerset Mill in Skowhegan, Maine. These investments reflect Sappi's confidence that the North American region can play a significant role in the global chemical cellulose market, complementing already strong market positions in release and fine papers.
The Cloquet conversion project will not affect the company's coated paper business at that site. Dry fiber handling systems and improvements to paper machine capabilities approved as part of this project ensure that product quality across all grades will be unaffected. Currently, the Cloquet pulp mill produces hardwood kraft (NBHK) pulp for market sales. Sappi will work closely with its pulp customers to ensure an orderly transition, including, where appropriate, making supplies available from its Somerset Mill in Skowhegan, Maine. The USD13 million capital project at the Somerset Mill includes upgrades to the existing gap former on PM3, improving its cost structure and allowing the production of a broader range of products on the machine. The PM3 rebuild project is slated for completion in fall 2012. |
10-Nov-2011
(C) | |
02-Nov-2011
(Official Notice) | Sappi Fine Paper Europe confirmed to customers the uninterrupted supply of its Galerie Art range following M-reals announcement M-real Oyj, which produces the Galerie Art range of woodfree coated reels and sheets for Sappi Europe, announced that it will initiate a consultation process with the employees of its AAnekoski mill in accordance with Finnish labour law. Such consultation might result in the definitive closure of paper machine 2 (PM2). Sappi Europe has therefore established a contingency plan to ensure that it maintains an uninterrupted supply of products to its customers. Sappi Europe and M-real Oyj have agreed that, in case of a cessation of production at AAnekoski mill, the supply of Galerie Art woodfree coated reels would be transferred to M-real's Husum mill in Sweden. Sappi Europe would remain the exclusive seller of coated paper produced by M-real`s Husum mill. With regard to the supply of Galerie Art woodfree coated sheets produced at AAnekoski Mill, this production would be transferred to other Sappi sites in Europe. |
07-Oct-2011
(Official Notice) | |
25-Aug-2011
(Official Notice) | Sappi announced the successful implementation of a three year EUR360 million Trade Receivables Securitisation Programme for its non-South African businesses. The programme is arranged by UniCredit Bank AG and funded via its Arabella Finance Limited conduit programme. The proceeds have been used to refinance the group's existing short-term securitisation programme which was due to mature in December 2011. Following a successful USD680 million multi-currency Senior Secured Notes Offering and an extension and increase of its EUR350 million Revolving Credit Facility earlier this year, the group's new securitisation programme further extends its debt maturity profile at a very competitive cost. |
04-Aug-2011
(C) | |
03-Aug-2011
(Official Notice) | Sappi Southern Africa announces the closure of its Adamas mill Johannesburg -- Sappi Southern Africa has today announced it will shut down its Adamas paper mill in Port Elizabeth, South Africa. The permanent closure of the mill is expected to be finalised at the end of August. This brings to a conclusion the process announced on 24 May 2011 to investigate the continued operation of the mill.
Sappi Southern Africa has concluded an agreement with its Adamas mill employee representatives and redundancy notices have been issued to staff which specifies redundancy terms and includes provisions for outplacement and training support for all employees, to ensure that people have the best possible opportunity to secure new employment. The Adamas mill employed 213 people. The mill has operated in Port Elizabeth for 47 years. The volumes produced at the mill have been transferred to Sappi Enstra and Sappi Tugela mills. We expect to take a charge of approximately US$5 million in respect of these closure costs in the fourth financial quarter ended September 2011. Sappi will maintain its presence in the Eastern Cape as regards marketing and sales as well as the collection and purchase of collected fibre (used for recycled paper) through Sappi ReFibre.
Forestry investment
Furthermore Sappi, in partnership with AsgiSA-EC have developed a joint proposal with a strategic goal of accelerating the establishment and management of 30,000ha of commercial tree plantations by 2020 in the Eastern Cape. It is anticipated that these partnerships will be developed between Sappi and communities that hold land rights, with Sappi being the "implementation partner" as a provider of technical, managerial and administrative support to the community businesses. This development is expected to create 1,400 direct and permanent unskilled jobs and a further 125 jobs for skilled workers. Using industry trends, it is expected that some four to five indirect jobs would be created for each direct job, meaning a further almost 8,000 jobs. In rolling out the project, Sappi and AsgiSA-EC have already developed close to 150ha in conjunction with the Mkambathi and Sinawo communities. |
20-Jul-2011
(Official Notice) | After an exhaustive search for possible purchasers for its Biberist mill in Switzerland, Sappi Fine Paper Europe announced that it has been unsuccessful in its attempts to find a suitable acquirer to allow continued operations and employment at the mill. The company has therefore decided on the complete closure of the mill. Production at paper machines 8 and 9 has already ceased and production on the uncoated paper line will halt at the end of August. Redundancy notices to all remaining employees affected by the closure are being sent out.
Sappi has agreed a social plan with the employees and the labour unions. Meanwhile Sappi continues its search for a new owner for the site. Approximately 550 employees in total will be affected by the closure, of which 134 have been given notice earlier. The volumes produced at the mill will be transferred to other Sappi sites in Europe. There will be no supply interruption to customers during the mill closure and transfer of production. With the cessation of coated graphic paper production at Biberist mill, Sappi will reduce its graphic paper capacity by 500 000 tons per annum. |
23-Jun-2011
(Official Notice) | Sappi announced that following the retirement in December 2010 of Mr H Mamsch and in line with Sappi's succession planning, two new independent non-executive directors will join the board later this year. Mr Mike Fallon will join the board with effect from 01 September 2011. Mr Frits Beurskens will join the board with effect from 01 October 2011. |
23-May-2011
(Official Notice) | Sappi Southern Africa announced that it had initiated a consultation process with staff and relevant Union representatives to cease operations at Adamas Mill in Port Elizabeth in response to difficult market conditions and sustained input costs increases. This supports Sappi Southern Africa's strategy to improve the competitiveness of its fine paper business by aligning its production capacity to market demand. Removal of production capacity at Adamas would address the high manufacturing overheads associated with a small mill (Adamas produces about 40 000 tpa, of a total regional capacity in excess of 1 million tpa). Variable costs will be improved by shifting production closer to Sappi's main South African markets and raw material sources.
Sappi Southern Africa acquired the Adamas Mill in 1964. It originally produced board for the motor industry and subsequently uncoated writing and printing papers with a significant percentage of recycled fibre. The potential closure of Adamas Mill would have no impact on customers as production will be moved to Sappi's Enstra and Tugela Mills. Sappi will maintain its presence in the Eastern Cape as regards marketing and sales as well as the collection and purchase of collected fibre (used for recycled paper) through Sappi ReFibre.
Forestry investment
Furthermore Sappi, in partnership with AsgiSA-EC have developed a joint proposal with a strategic goal of accelerating the establishment and management of 30 000ha of commercial tree plantations by 2020 in the Eastern Cape. This development is expected to create a number of permanent skilled and unskilled jobs. Sappi and AsgiSA-EC have already developed close to 150ha in conjunction with the Mkambathi and Sinawo communities. |
19-May-2011
(Official Notice) | Sappi Fine Paper Europe announced today that it will cease production of coated graphic paper at its Biberist paper mill in Switzerland. After due and thorough consideration during the consultation process with local employees ending on 16 May 2011 the definitive decision to discontinue the coated graphic paper production was taken. It is anticipated that production will cease by the end of July. The consultation was conducted with good co-operation between all parties involved, complying with the applicable Swiss legal framework. Sappi continues to investigate possibilities for the sale and alternative industrial use of the site. Promising leads are being followed up, with a clear emphasis on those which generate the maximum employment opportunities. To give potential acquirers interested to convert the mill to alternative products the opportunity to complete a transaction, a decision regarding the future of paper machine No 6 (PM6) and paper machine No 9 (PM9) as well as associated support departments has been postponed. However, those employees working on paper machine No 8 (PM8) and associated people in finishing and supporting departments will be served notice of redundancy by the end of May. A social plan will specify redundancy terms, including provisions for outplacement and training support for all affected employees. The social plan will ensure that the affected employees are provided the best possible opportunities to secure new jobs. In consultation with and supported by the Cantonal government of Solothurn, a decision concerning the remaining employees will be made by the end of July. The Biberist Mill employs around 550 employees in total. |
09-May-2011
(C) | Sales revenue for the interim period ended 31 March 2011 increased to USD3.697 billion (2010: USD3.196 billion). Gross profit more than doubled to USD464 million (2010: USD222 million), and operating profit rocketed to USD120 million (2010: USD29 million), while the loss for the period narrowed to USD37 million (2010: loss of USD82 million). Furthermore, headline earnings per share improved to USD5cps (2010: loss of USD18cps).
Dividend
No dividend was declared.
Outlook
Sappi expects business conditions in their major markets to remain favourable; however, input costs are increasing as the global economic recovery gathers momentum. the group also expects to start realising the benefits of their European profit improvement measures in the fourth financial quarter. Sappi therefore expects the improved trend in the group's underlying operating performance to continue through the remainder of the financial year. The group expects positive cash generation for the rest of the financial year and good net cash generation for the full year. The third financial quarter, is generally a seasonally weaker quarter. The quarter will also be impacted by planned annual maintenance shuts at a number of Sappi's major pulp mills, which will result in a substantial increase in maintenance costs and lost contribution from reduced output. The group expects their results excluding special items for the third financial quarter to be in line with the equivalent quarter last year. |
06-Apr-2011
(Official Notice) | Further to Sappi's announcement on Monday, 4 April 2011, in connection with a bond issue, Sappi announced today that it priced its upsized bond offering to raise approximately USD705 million equivalent of new senior secured notes. The new notes will be issued by Sappi Papier Holding GmbH in a series of Euro250 million notes maturing in 2018 issued at a price of 100% with a coupon of 6.625%, and a series of USD350 million maturing in 2021 issued at a price of 100% with a coupon of 6.625%. The transaction is subject to customary closing conditions and settlement is expected to occur on 14 April 2011. The net proceeds of the offering are expected to be used (a) to redeem the remaining outstanding amount of our 6.75% Guaranteed Notes due 2012, (b) to repay approximately Euro200 million of the outstanding borrowings under our OeKB Term Loan Facility and (c) for general corporate purposes. The offering is part of a larger financing in connection with which we have also received commitments, subject to various conditions, for an aggregate amount of up to Euro350 million under a new or amended and restated revolving credit facility maturing in 2016. |
04-Apr-2011
(Official Notice) | Sappi issued a trading update in connection with the capital markets transaction that was announced. Sappi expects demand for coated paper to remain reasonably firm in their major markets. Raw material input costs are gradually increasing as commodity prices rise. Sappi continues to focus on more efficient procurement and use of inputs. In response to rising costs, Sappi announced price increases for coated woodfree web products in North America and for coated and uncoated woodfree products in Europe, with effect from March and April 2011. On 31 March the group announced that they would enter into a consultation process with the employee representatives of Biberist Mill. The aim is to identify ways of improving the profitability of their European business, which may include the full closure of Biberist Mill. If the full closure of Biberist Mill were to occur, Sappi would reduce its coated fine paper capacity by 435 000 tons and its uncoated fine paper capacity by 65 000 tons.
The chemical cellulose business is performing strongly and Sappi intends to accelerate their plans for expanding this business through investment in additional capacity. In the second financial quarter of 2011 it is expected that the group's operating profit (excluding special items) will continue the improving trend compared to the equivalent quarter last year, but to be below that of the first financial quarter as a result of seasonal factors and the additional accounting week in the first financial quarter. Sappi expects to generate positive net cash for the second financial quarter. |
04-Apr-2011
(Official Notice) | Sappi announced the offering of USD680 million, in euros and dollars, equivalent aggregate principal amount of senior secured notes to be issued in two series due 2018 and 2021, respectively, in an offering that is exempt from the registration requirements of the U.S. Securities Act of 1933, as amended (the "securities act"). The notes will be issued by Sappi Papier Holding GmbH (the "issuer"), a subsidiary of Sappi. The net proceeds of the offering are expected to be used:
* to redeem the remaining outstanding amount of the issuer's 6.75% guaranteed notes due 2012 and;
* to repay approximately EUR200 million of the outstanding borrowings under the OeKB Term Loan Facility. |
31-Mar-2011
(Official Notice) | Sappi Fine Paper Europe envisages the closure of its Biberist Mill in Switzerland in response to market conditions and sustained increases in input costs and begins consultations As a result of continued overcapacity in the European Coated and Uncoated Fine Paper markets, it has not proved possible to recover the sharply increased costs of raw material and energy over recent years. Sappi has therefore undertaken a review of its European production activities. Despite our best efforts to curb costs and gain better margins, Biberist Mill has been unable to generate acceptable returns. Consequently, SFPE has announced that it will enter into a consultation process with its Biberist mill employee representatives and social partners. The aim is to identify the best way of improving SFPE's profitability, which may also include a full closure of Biberist mill. The continued unrelenting increases in input costs and the excessive local energy prices, combined with the overcapacity in the European market have led to unacceptable returns for Sappi Fine Paper Europe and it therefore became necessary to review production capacity. In the event that production at Biberist Mill does cease, customers for the coated fine paper products would be offered comparable products and services from other Sappi sites in Europe and no supply interruption would be anticipated. The uncoated product lines consisting of the Cento family of brands would be discontinued. The sales office in Switzerland will continue operations. If the closure of Biberist mill were to occur, Sappi would reduce its coated fine paper capacity by 435 000 tons and its uncoated fine paper capacity by 65 000 tons. Should the mill close, approximately 550 employees would be affected. |
11-Mar-2011
(Official Notice) | |
09-Feb-2011
(Official Notice) | Sappi's annual general meeting was held in Johannesburg this afternoon (09 February 2011) and all resolutions as proposed at the meeting were duly passed by the respective requisite majorities. |
09-Feb-2011
(C) | Group sales improved to USD1.9 billion (USD1.6 billion) and gross profit more than doubled to USD236 million (USD89 million). Operating profit grew drastically to USD121 million (USD1 million), while profit attributable to ordinary shareholders of the group was recorded at USD37 million (loss of USD51 million). Consequently, the prior year's headline loss per share turned around to USD7cps (loss of USD11cps).
Dividend
No dividend has been declared for the period under review.
Prospects
The group is pleased with the improving trend in its financial performance. The group expects demand for coated paper to remain reasonably firm in its major markets. Prices for coated mechanical paper in Europe increased in January 2011, which is expected to help restore this product category to profitability. The group's raw material input costs are gradually increasing as commodity prices rise. The group continues to focus on more efficient procurement and use of its inputs. The company's chemical cellulose business is performing strongly and it intends to accelerate its plans for expanding this business through investment in additional capacity. Although the group's net debt increased in the quarter as a result of working capital growth, the group intends to continue to reduce net debt this year. The group also aims to reduce finance costs by, from time to time, applying a portion of its cash on hand to further debt repayment. The group has today announced a tender offer to repurchase up to USD150 million of its senior notes, which mature in June 2012. This transaction will allow the group to use a portion of its available cash on hand more efficiently and to repurchase a portion of such notes well ahead of their maturity. In the second financial quarter, it is expected the group's operating profit (excluding special items) will continue the improving trend relative to the equivalent quarter last year, but to below that of the first financial quarter. |
09-Feb-2011
(Official Notice) | Sappi Papier Holding GmbH (formerly Sappi Papier Holding AG, the "Company") announced that it is offering to purchase for cash (the "Offer") up to USD150 million principal amount (the "Tender Cap") of its outstanding USD500 million 6.75% Guaranteed Notes due 2012 (the "Securities") from each registered holder of Securities (a "Holder"). The purpose of the offer is to acquire securities in order to reduce the aggregate amount of the company's outstanding indebtedness. The offer is being made upon the terms and subject to the conditions set forth in the offer to purchase dated 9 February 2011 (the "Offer to Purchase") and the related letter of transmittal. Capitalised terms used in this announcement have the meanings ascribed to them in the offer to purchase. |
13 Dec 2010 11:12:11
(Official Notice) | Shareholders are advised that the annual report for the year ended September 2010 will be despatched to shareholders by no later than the 20 December 2010. The annual report will also be available online on 13 December 2010 on the Sappi website ( www.sappi.com ). The audited annual financial statements included in the annual report contain no material modifications to the reviewed preliminary results for the year ended September 2010 which were published on 08 November 2010.
The annual financial statements have been audited by Sappi's auditors, Deloitte - Touche. Their unqualified report is available for inspection at the company?s registered office. Sappi intends to file its annual report on Form 20-F with the United States Securities and Exchange Commission on 13 December 2010. Once filed, this document will also be available on www.sappi.com
Notice is hereby given that the annual general meeting of shareholders of Sappi will be held at the registered office of the company in the Auditorium, ground floor, 48 Ameshoff Street, Braamfontein, Johannesburg on Wednesday 09 February 2011 at 14:30 to transact business as stated in the notice of the annual general meeting forming part of the annual financial statements. |
08 Nov 2010 17:12:48
(Official Notice) | Sappi Southern Africa (Pty) Ltd, a wholly owned subsidiary of Sappi, has been appointed company secretary of Sappi with immediate effect, replacing Sappi Management Services (Pty) Ltd which has become a dormant company. |
08 Nov 2010 09:51:04
(Official Notice) | Sappi announced that Alex Thiel has been appointed as the CEO of Sappi Southern Africa with effect from 01 December 2010. |
08 Nov 2010 09:41:49
(C) | Sales for the year ended grew to USD6.6 billion (2009: USD5.4 billion), while gross profit increased to USD786 million (2009: USD340 million), and operating profit soared to USD341 million (2009: Loss of USD73 million). Furthermore, profit for the period rose to USD66 million (2009: Loss of USD177 million).
Dividend
No dividend was declared.
Outlook
Sappi expects continued gradual improvement in global economic conditions during the year ahead; however the company remain cautious as a result of factors such as the volatility of exchange rates which could dampen growth. Against that background, the group expect demand for coated paper in major markets to recover further during the year. The group believes that input costs are likely to rise. Sappi intend to reduce their costs where possible and to grow revenue through sales volume, mix and higher price levels to achieve acceptable margins across the businesses. The group expects continued strong demand and good price levels for chemical cellulose in the year ahead. The reorganisation of the paper business in Southern Africa is expected to help improve margins; however, the rand is currently strong relative to the US dollar and remains volatile. A strengthening rand would be unfavourable for the performance of the Southern African business. The extended outage at Somerset pulp mill in October 2010 will reduce the potential profitability of the group's North American business for the quarter but they expect the pulp mill to start ramping up production in early November and for energy costs to be reduced once the rebuilt energy complex reaches optimum efficiencies. With the expected improvement in the performance of the company's businesses and reduced uncertainty in financial markets, Sappi will gradually reduce their cash on hand with further repayment of debt. This, together with their targeted continued reduction in net debt, will help reduce finance costs in the year ahead. In the first financial quarter, Sappi expects the group's operating profit (excluding special items) to continue the improving trend relative to the equivalent quarter last year. |
27 Oct 2010 15:31:40
(Official Notice) | Sappi Ltd announced that Jan Labuschagne, Chief Executive Officer of Sappi Southern Africa and a member of the Sappi Limited Executive Committee, has tendered his resignation from the company with effect end November 2010 to pursue other interests. |
30 Sep 2010 14:52:53
(Official Notice) | Sappi announced that Mr Helmut Mamsch intends to retire from the board of directors of the company on 31 December 2010, after 7 years service on the board. |
02 Aug 2010 09:57:17
(Official Notice) | Mr Valli Moosa will join the Sappi board with effect from 1 August 2010 as a non-executive director, following the conclusion of Sappi's R814 million black economic empowerment transaction earlier in 2010. |
02 Aug 2010 09:21:00
(C) | Sales increased to USD1.6 billion (USD1.3 billion) and gross profit more than doubled to USD288 million (USD44 million). An operating profit of USD154 million (loss of USD7 million) was made there was turnaround in net attributable profit to USD64 million (loss of USD62 million). In addition, headline earnings on a per share basis jumped to USD13cps (loss of USD12cps).
Outlook
Although demand in most markets has continued growing, the outlook remains cautious in light of ongoing uncertainty in global economies and demand levels. In Europe, prices for coated woodfree paper have risen twice since April 2010 and Sappi has announced further increases of at least 7% from September 2010, which Sappi believes are necessary to start restoring margins. Prices for coated mechanical paper started to rise in July 2010 but remain low. North American prices for coated paper are also increasing gradually. The rate of increase of pulp prices started flattening in the latter part of the quarter and Sappi expects a period of softer pulp prices over the next few months. Demand for products in Europe is expected to further accelerate in the fourth financial quarter, and European order books are firm. Order books in other businesses have lengthened. The costs of non-pulp raw material inputs have started increasing and Sappi is actively managing processes to minimise the impact of such increases. The group expects that pulp input costs will continue to affect the performance of the European business. Under current market conditions, management expects operating profit (excluding special items) as well as net cash generation to continue to improve in the fourth financial quarter. |
14-May-2010
(Permanent) | September 08 rights issue effect excluded. |
07 May 2010 09:55:31
(C) | Revenue for the period ended March 2010 increased to USD3.1 billion (2009: USD2.5 billion) . Gross profit decreased to USD222 million (2009: USD262 million) while operating profit fell to USD29 million (2009: USD63 million) . Loss for the period was higher at USD82 million (2009: USD-12 million). Furthermore, headline loss per share increased to 18cps (2009: -2cps) .
Dividend
No dividend was declared.
Outlook
Sappi expect conditions in major markets to continue to improve gradually this year; however, the extent of the economic recovery is still uncertain. There has been significant order inflow of coated woodfree paper in Europe and a modest improvement in demand for coated mechanical paper. As the Euro has weakened, Sappi's export markets have strengthened significantly and the company expect demand to remain firm in these markets. A major factor for the company's industry will be the level of pulp prices and the availability of pulp following the disruption caused by the earthquake in Chile. An extended period of high pulp prices would benefit Sappi's North American and Southern African businesses directly, as they are net sellers of pulp. Continued high pulp prices would act as a catalyst for further price increases for coated paper in Europe beyond the 10% increase the company has announced to take effect in June 2010, which are expected to start improving margins in European business. In the company's Southern African business, Sappi expects to see continued good demand for Saiccor's product, as well as firmer price levels. The Kraft business is starting to see signs of improved demand, and its performance should improve in the second half of the year. |
29 Apr 2010 16:34:15
(Official Notice) | At the general meeting of the shareholders of Sappi held on Thursday, 29 April 2010, all of the ordinary and special resolutions regarding Sappi's Broad Based Black Economic Empowerment Transaction proposed at the general meeting were approved by the requisite majority of votes. The special resolutions will be lodged for registration with the Companies and Intellectual Property Registration Office. |
01 Apr 2010 07:53:50
(Official Notice) | Shareholders are advised that a circular was posted today to shareholders in respect of the Sappi Black Economic Empowerment ("BEE") Transaction regarding, inter alia, amendments to the Articles of Association of the Company to create "A" Ordinary Shares and increase the authorised share capital; the specific issue of Ordinary Shares and "A" Ordinary Shares for cash and the specific repurchase of "A" Ordinary Shares ("the Circular"). Notice is hereby given that the general meeting of Sappi shareholders will be held at 48 Ameshoff Street, Braamfontein, Johannesburg, 2001 on Thursday 29 April 2010 at 03:00pm to transact the business as stated in the general meeting notice forming part of the Circular. A copy of the circular is on our website at www.sappi.com.
Salient dates and times
*Form of proxy for the General Meeting to be received by 03:00pm on Tuesday, 27 April 2010.
*General meeting to be held at 03:00pm on Thursday, 29 April 2010.
*Results of general meeting to be released on SENS Thursday, 29 April 2010.
*Results of general meeting to be published in the press Friday, 30 April 2010.
*Special resolutions lodged with CIPRO on or about Friday, 30 April 2010.
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25 Mar 2010 08:17:45
(Media Comment) | According to Business Report, Sappi announced a black economic empowerment ("BEE") deal that could help facilitate the company's land claim processes in future. The paper and pulp giant intends to sell 4.5 percent of its issued share capital to black investors, which translates into the empowerment of 30 percent of Sappi's South African businesses. The total value of the transaction amounts to R814 million, which will not have an impact on current financial facilities. Ralph Boettger, Sappi's chief executive, said he was pleased the company had been able to structure an equity-based empowerment deal so soon after the promulgation of the forestry sector BEE charter. Boettger also commented that the deal could help facilitate the land claims against company property, which it had been dealing with for a number of years. Claims for land belonging to Sappi, one of the largest land owners in South Africa, have been increasing rapidly since 2004. Boettger also stated, "However, we are not doing these (BEE) deals with the sole view to resolve land claims issues,". |
24 Mar 2010 08:09:43
(Official Notice) | |
15 Mar 2010 08:36:02
(Media Comment) | The Sunday Times Business Times reported Sappi CEO Ralph Boettger as saying that the company is "not another Super Group," despite its heavy debt burden. However, to ease fears Boettger plans to cut debt from USD2 billion to USD2.6 billion in 2012. Moody's also unexpectedly downgraded Sappi's credit rating below "investment grade." Sappi's big problem is that it pays USD250 million in interest alone every year. |
01 Mar 2010 17:02:22
(Official Notice) | Sappi's annual general meeting was held in Johannesburg and all resolutions as proposed at the meeting were duly passed by the respective requisite majorities. Ordinary resolution number four (to place 25 million shares of the unissued shares of the company, including treasury shares, under the control of the directors), was withdrawn by the company. |
28 Jan 2010 09:51:05
(C) | Sales rose to USD1.6 billion (USD1.2 billion) for the quarter-ended 31December 2009. Gross profit declined to USD89 million (USD145 million) and operating profit decreased to USD1 million (USD57 million). A net attributable loss for the period of USD51 million (profit of USD23 million) was recorded, as well as a headline loss per share of USD11cps (profit of USD7cps).
Outlook
Conditions in major markets are expected to improve gradually in 2010, resulting in rising demand for Sappi products. Although Sappi expects demand and capacity utilisation rates to improve compared to financial 2009, the company does not expect demand to return to 2008 levels. The company will therefore continue to manage output to meet customer demand. Current indications are that recovery of coated mechanical paper is lagging coated wood free paper, which will impact the European business.
As markets improve, it is likely that input prices for raw materials and energy will also rise. The strong demand for pulp and chemical cellulose, accompanied by rising prices, is expected to have a favourable effect on the Southern African and North American businesses, which are net pulp sellers. Increased pulp prices are, however, expected to result in rising costs for the European business which purchases more than half of its pulp requirements. The achievement of acquisition synergies and the effect of cost reduction initiatives and mill closures over the past year are expected to help offset rising input costs.
Against this background, Sappi expects the operating profit excluding special items to remain positive in the second financial quarter but to be below the level achieved this quarter. |
29 Dec 2009 09:25:50
(Media Comment) | Business Day reported that Sappi chairman Danie Cronje and CEO Ralph Boettger stated that the paper and pulp producer aims to complete a black empowerment equity transaction to broaden Sappi's shareholder base. Sappi's main empowerment deal has been to sell 25% of its local forestry land to the Lereko Property Consortium, which includes Sappi employees. Other goals include improving profitability and returns, generating strong cash flows and reducing debt, aligning manufacturing operations to meet market conditions and optimising production. Sappi's refinancing has provided enough liquidity for its foreseeable cash requirements and new products and services. |
11 Dec 2009 14:06:22
(Official Notice) | Shareholders are advised that the annual report for the year ended September 2009 will be despatched to shareholders on 14 December 2009. The annual report is also available online on the SAPPI website ( www.sappi.com ). The audited annual financial statements included in the annual report contain no material modifications to the reviewed preliminary results for the year ended September 2009 which were published on 09 November 2009. The annual financial statements have been audited by SAPPI's auditors, Deloitte - Touche. Their unqualified report is available for inspection at the company's registered office. Sappi intends to file its annual report on Form 20-F with the United States Securities and Exchange Commission on 11 December 2009. Once filed, this document will also be available on www.sappi.com
Notice is hereby given that the annual general meeting of shareholders of SAPPI will be held at the registered office of the company in the Auditorium, ground floor, 48 Ameshoff Street, Braamfontein, Johannesburg on Monday, 1 March 2010 at 15:00 to transact business as stated in the notice of the annual general meeting forming part of the annual financial statements. |
23 Nov 2009 09:04:45
(Official Notice) | Sappi Ltd, the global pulp and paper group, announced that Dr Rudolf Thummer will join the Sappi Ltd board with effect from 01 February 2010 as a non-executive director, following the retirements of Mr David Brink and Dr Franklin Sonn from the Sappi Ltd board on 31 December 2009.
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09 Nov 2009 11:20:04
(Official Notice) | Mr Peter Mageza will join the Sappi board with effect from 1 January 2010 as an independent non-executive director, following the retirements of Mr David Brink and Dr Franklin Sonn from the Sappi board on 31 December 2009. |
09 Nov 2009 09:45:35
(C) | |
30 Oct 2009 08:59:48
(Official Notice) | Intended closure of Sappi Usutu Pulp Mill and restructuring of forestry business in Swaziland in response to market conditions and forest fire damage In response to adverse market conditions, as well as the cumulative severe impact of fire damage over the past few years, in particular the fires of August 2008 which destroyed 40% of the Usutu timber crop, it has become apparent that the Sappi Usutu Pulp Mill is no longer sustainable.
Sappi has therefore announced that it will begin the process of consulting with staff and all other relevant stakeholders regarding its intention to close the Usutu Pulp Mill on 31 January 2010. With the closure of the mill Sappi would also exit the unbleached softwood flash-dried pulp market served by Usutu Pulp Mill. The mill has a capacity of 190 000 tonnes annually. Sappi will continue to seek future beneficiation opportunities for the profitable utilisation of the Usutu forests. This could include the introduction of new investors. The Sappi Usutu Pulp Company directly employs around 600 people. |
22 Oct 2009 13:19:22
(Official Notice) | In response to the reduction in European consumption of coated magazine paper arising from the global recession it is apparent that the industry is experiencing overcapacity. Sappi has taken a substantial amount of commercial downtime since the beginning of the year in response to a reduction in demand. Sappi Finland I Oy has announced that it will enter into a consultation process with its Kangas mill employee representatives. The aim of this process is to identify the best way of improving company profitability, which may include a full closure of Kangas mill. The continued level of downtime is no longer considered viable and it is therefore necessary to review production capacity. Possible redundancies would be implemented by the end of the year 2009. The Sappi Finland I Oy's, Kangas site employs around 150 employees. Sappi employs around 800 people in Finland.
In the event that the Kangas mill ceases production the Galerie Silk range would be supplied to customers from the Sappi Lanaken mill in Belgium. Sappi would also launch a complementary grade, Galerie Fine Silk, from Sappi Finland I Oy's, Kirkniemi mill thereby widening the customer offer of its coated magazine paper range while ensuring that there is no supply interruption. Kangas mill, has the capacity to produce 210 000 tonnes of coated magazine paper annually. The consultation does not concern Sappi Finland I Oy's Kirkniemi mill and its Sales Office. |
02 Oct 2009 12:05:54
(Official Notice) | Sappi has requested the UK Financial Services Authority to cancel the listing of the company's ordinary shares of R1.00 each on the UK Official List and to cancel the admission of the ordinary shares to trading on the London Stock Exchange's market for listed securities. It is expected that the cancellation of the UK listing and of the admission of the ordinary shares to trading on the London Stock Exchange ("LSE") will take effect at 8.00 am (UK time) on Monday, 2 November 2009. The ordinary shares have been listed on the UK Official List since 1992. |
02 Oct 2009 11:14:46
(Official Notice) | Sappi advises that its issued share capital comprises 537 117 864 ordinary shares of ZAR1.00 each. Of that number, the company holds 21 384 559 shares in treasury through a subsidiary company and a trust leaving 515 733 305 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. The above figures are as at 30 September 2009 and may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Sappi Ltd under the Disclosure and Transparency Rules. |
31 Aug 2009 16:01:59
(Official Notice) | Sappi Southern Africa commences consultations regarding cost reduction and efficiency improvement initiatives at its Kraft and Fine Paper mills in South Africa.
Sappi Southern Africa today began a process of consultations with employees and trade unions at its Kraft and Fine Paper mills regarding cost reduction and efficiency improvement initiatives to ensure that the company is well positioned to take full advantage of the expected improvement in operating conditions and markets. |
28 Aug 2009 09:17:39
(Official Notice) | Sappi announced the completion of a series of refinancing transactions that Sappi undertook in order to improve its debt maturity profile and strengthen its balance sheet. As part of the refinancing, Sappi entered into a new revolving credit facility in an amount of EUR209 million, which remains undrawn. In addition, the proceeds of EUR350 million and USD300 million senior secured notes, which were issued on 29 July 2009 by a special purpose vehicle in an offering exempt from the registration requirements of the U.S. Securities Act of 1933, as amended, were released and made available to the Sappi group. Sappi used the proceeds from the offering of the notes and a portion of its available cash on hand to repay certain short-term indebtedness, including all amounts outstanding (EUR400 million) under its previous revolving credit facility and to repurchase all its outstanding EUR220 million vendor loan notes issued to M-real. The vendor loan notes have been repurchased at a price of 86.5% of their principal amount. Sappi also refinanced the OeKB term loan (previously due 2010) in an amount of Euro400 million with a new 5-year amortising maturity profile. |
26 Aug 2009 18:17:47
(Official Notice) | Sappi Fine Paper North America announced that it will permanently cease operations at its coated fine paper mill in Muskegon, Michigan. The closing will affect approximately 190 salaried and hourly Muskegon employees, who have been on furlough since the suspension of operations at the mill, which was announced in March 2009. Prior to that suspension, Sappi Fine Paper North America operated a single paper machine at the site with an annual production capacity of 170 000 metric tons. Sappi will record a charge of approximately USD30 million in the fourth financial quarter in respect of separation and other closure costs. Of this amount, an estimated USD10 million relates to non-cash charges. The fixed assets are fully impaired. |
30 Jul 2009 09:06:02
(C) | Sales declined by 12% to USD1.3 billion (USD1.5 billion). Gross profit was down by 33% to USD44 million (USD66 million (USD33 million) and an operating loss of USD3 million (profit of USD7 million) was made. Nevertheless, the net attributable loss profit for the period improved slightly to USD62 million (loss of USD63 million). In addition, the headline loss per share narrowed to USD12cps (loss of USD17cps).
Outlook
Although global economic conditions remain weak Sappi has seen improvement in pulp markets and some of the coated graphic paper export markets. In addition, inventory reduction in the coated graphic paper supply chain has largely run its course and the group has started seeing order levels closer to end use demand levels. Sappi also expects demand, particularly for reels, to strengthen during the next quarter which is historically the seasonally strongest quarter, and for operating rates to improve in Europe and North America. The chemical cellulose market improved markedly during the third financial quarter in terms of both demand and pricing. Sappi Saiccor Mill is responding by ramping up its production following the 30% capacity expansion commissioned last September, and expects to achieve close to full capacity by financial year end and improve sales volumes during the next quarter as production increases.
Other factors which are expected to improve results are the achievement of further alternative fuel tax credits in North America of approximately USD40 million which will be reported as a special item, subject to continued availability under US law, accelerated synergy achievement in respect of the European acquisition integration, the benefits of fixed and variable cost reduction action and potential for some further input price reduction realisation. Against this background, management expects to return to operating profitability excluding special items during the next quarter. Cash generation is expected to be positive for the quarter.
The successful completion of the group's refinancing will take care of liquidity and significant debt maturities for at least the next three years. With Sappi's well structured business and decisive management action, the group is strongly placed to ride out the current economic downturn and take full advantage of Sappi's leading market positions and efficient asset base when conditions improve. |
27 Jul 2009 09:32:32
(Official Notice) | Sappi announced that it had successfully priced its upsized bond offering to raise approximately USD800 million equivalent of new senior secured notes due 2014. The new notes were in two tranches: a Euro tranche of Euro350 million (USD497 million) and a USD tranche of USD300 million. The tranches priced at issue prices of approximately 95% with coupons of 11.75% and 12% and yields of 13.125% and 13.375%, respectively. The settlement date for the transaction is Wednesday, 29 July 2009 and is subject to customary closing conditions. The notes will be issued by PE Paper Escrow GmbH, a special purpose Austrian limited liability company. The proceeds of the offering will be immediately placed into escrow by the issuer. The conditions to release the proceeds from escrow include the refinancing of Sappi's existing revolving credit facility and the establishment of a new revolving credit facility, the replacement of Sappi's existing OeKB term loan facility with a new OeKB term loan facility, the amendment of certain other debt facilities of Sappi, and other customary conditions. Upon satisfaction of the escrow conditions, the issuer will become an indirect wholly owned subsidiary of Sappi Ltd and the notes will be guaranteed by Sappi Ltd and certain of its subsidiaries and secured with, together with the new revolving credit facility, the new OeKB term loan facility and certain other indebtedness of Sappi, first-priority security interests over certain assets of Sappi Ltd and its subsidiaries. The bonds have been rated Ba2 by Moody's and BB (stable) by Standard and Poors. Sappi will use the proceeds to extend the maturity of debt by repaying shorter term debt. Sappi has an arrangement and currently intends to repurchase all or part of the Euro220 million vendor loan notes issued to M-real in connection with the acquisition of its coated graphic paper business at a discount of between 8.5% and 13.5%. |
20 Jul 2009 09:13:35
(Official Notice) | Market conditions remained weak in the quarter in all the group's major markets. Sales volumes for the group were similar to the prior quarter. Prices realised were under pressure in most regions. For the quarter ended June 2009 management expects to report improved operating results, excluding special items, compared to the quarter ended March 2009 for the company's European business, which Sappi expects to return to profitability and for its North American business, as a result of synergy achievements in Europe, and cost and input price reductions. In addition the North American business expects to report the benefit of alternative fuel credits in the range of USD30 - USD40 million. Southern African business was impacted by the strengthening of the Rand relative to the US Dollar, weak domestic demand and low pulp prices, which management expects will result in a loss before special items for the quarter for the region. For the group, operating loss excluding special items for the quarter is expected to be largely in line with the quarter ended March 2009. The group continues to prioritise cash generation and expects to report a positive net cash generation for the quarter. Financial statements for the quarter ended June 2009 are not yet finalised. The information above is based on certain preliminary financial data. This information is subject to change as final financial data becomes available, and the financial statements are prepared and reviewed by the board and Sappi's auditors.
Outlook
Demand and prices for chemical cellulose have strengthened and the Saiccor mill has a strong order book. The mill is progressing well with the ramp up of production and expects to improve sales volumes in the next quarter. Global markets for coated paper remain depressed; however, management expects stronger seasonal demand during the next quarter for web products and stable demand for sheet products. The extent of inventory reduction in the group's customer supply chain appears to be reducing and Sappi therefore expects an improvement in coated paper demand on paper producers. The company expects alternative fuel credits of approximately USD40 million in the next quarter. Sappi expects to generate positive net cash flow in the quarter ended September 2009. |
20 Jul 2009 08:43:33
(Official Notice) | Sappi Ltd announced the offering of approximately USD500 million aggregate principal amount of senior secured notes due 2014 in an offering that is exempt from the registration requirements of the US Securities Act of 1933, as amended. The notes will be issued by PE Paper Escrow GmbH, a special purpose Austrian limited liability company.
The proceeds of the offering are expected to be immediately placed into escrow by the issuer. The conditions to release the proceeds from escrow include the refinancing of Sappi's existing revolving credit facility and the establishment of a new revolving credit facility, the replacement of Sappi`s existing OeKB term loan facility with a new OeKB term loan facility, the amendment of certain other debt facilities of Sappi, and other customary conditions. Upon satisfaction of the escrow conditions, the issuer will become an indirect wholly owned subsidiary of Sappi Ltd and the notes will be guaranteed by Sappi Ltd and certain of its subsidiaries and secured with, together with the new revolving credit facility, the new OeKB term loan facility and certain other indebtedness of Sappi, first-priority security interests over certain assets of Sappi Ltd and its subsidiaries.
This offering is one component of a refinancing that Sappi is undertaking in order to improve its debt maturity profile and strengthen its balance sheet. As part of the refinancing, Sappi will also enter into a new revolving credit facility in an amount of Euro250 million (which may be increased up to Euro400 million) and a new OeKB term loan facility in an amount of up to Euro400 million. Sappi intends to use the proceeds from the offering of the notes, drawings under the new OeKB term loan facility and a portion of its available cash to repay all drawings under the existing revolving credit facility, all amounts outstanding under the existing OeKB term loan facility and other indebtedness. |
08 Jul 2009 14:37:38
(Official Notice) | Sappi today announces that as part of its stated objective to improve the maturity of its debt profile, it has recently commenced, and is presently engaged in, the bank syndication process for a new secured revolving credit facility and a new secured OeKB term loan facility in order to refinance or replace its existing revolving credit facility (which matures in May 2010) and OeKB term loan facility (which matures in December 2010). Sappi is also considering the possibility of accessing the capital markets in order to arrange long term secured debt to refinance some of its existing short-term debt and other debt. The completion of Sappi's refinancing efforts will be subject to a number of factors, including liquidity and market conditions in the banking and capital markets. There can be no assurance that the refinancing or any capital markets transaction will be completed. |
01 Jul 2009 15:52:39
(Official Notice) | Sappi advises that its issued share capital comprises 537 117 864 ordinary shares of R1.00 each. Of that number, the company holds 21 329 759 shares in treasury through a subsidiary company and a trust leaving 515 788 105 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. The above figures are as at 30 June 2009 and may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Sappi Ltd under the Disclosure and Transparency Rules. |
01 Jun 2009 13:21:39
(Official Notice) | Sappi advises that its issued share capital comprises 537 117 864 ordinary shares of R1.00 each. Of that number, the company holds 21 329 759 shares in Treasury through a subsidiary company and a trust leaving 515 788 105 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. |
05 May 2009 10:24:44
(C) | The quarter was characterised by a sharp decline in sales volumes, which was driven by declines in demand for coated paper and pulp in major markets. Sales volumes declined approximately 24% compared to the corresponding quarter last year, including the mills acquired from M-real on 31 December 2008 in both periods. Actual sales volumes including the new business were approximately 95% of volumes reported a year ago. Average prices realised by the group in the quarter were 6% lower in US dollar terms than a year ago mainly as a result of the sharp fall in pulp prices, which fell 32% relative to a year earlier. Prices realised for coated paper were higher than in the corresponding quarter a year ago. |
04 May 2009 15:06:58
(Official Notice) | Sappi advises that its issued share capital comprises 537 117 864 ordinary shares of ZAR1.00 each. Of that number, the company holds 21 329 759 shares in treasury through a subsidiary company and a trust leaving 515 788 105 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. |
25 Mar 2009 10:16:07
(Media Comment) | Business Report quoted Fitch Ratings ("Fitch") as saying that Sappi's local manufacturing business was strong enough to operate independently from its parent. This was despite Fitch downgrading the division. Some investors have begun urging the company to split up its local and international divisions. However, CE Ralph Boettger said there are "no plans to split up the business whatsoever". |
09 Mar 2009 13:52:56
(Media Comment) | Finweek reported that shareholder activist Theo Botha asked some tough questions at Sappi's AGM in early March. Botha questioned why CEO Ralph Boettger had received a R2 million performance bonus for three months' work, and why Sappi had bought the loss-making Finnish paper producer, M-Real for R9 billion in 2008. Referring to the performance bonus, chairman Danie Cronje, explained that it was in fact a signing-on fee. In addition, after M-Real announced in February that its EBITDA fell by 36.18% for the December 2009 quarter, Sappi said that it expected an operating loss for the quarter to-end-March 2009. John Biccard, manager at Investec's Value Fund, says that Sappi is the JSE's worst performing large-cap stock over nearly all time periods and is universally disliked. |
05 Mar 2009 11:18:22
(Official Notice) | In accordance with the United Kingdom's Financial Services Authority's disclosure and transparency rules, Sappi advises that its issued share capital comprises 537 117 864 ordinary shares of R1.00 each. Of that number, the company holds 21 184 062 shares in treasury through a subsidiary company and a trust leaving 515 933 802 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. The above figures are as at 27 February 2009 and may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Sappi Ltd under the disclosure and transparency rules. |
02 Mar 2009 16:02:13
(Official Notice) | Sappi's annual general meeting was held in Johannesburg this afternoon (02 March 2009) and all resolutions as proposed at the meeting were duly passed by the respective requisite majorities. Regarding the passing of Ordinary Resolution No 3 to place 25 million of the unissued shares of the company, including Treasury shares, under the control of the directors, the Chairman confirmed before proposing the resolution that, if the resolution were to be passed with the requisite majority, the authority will only be utilised to support the raising of funds should that prove to be an attractive source of funding. |
04 Feb 2009 10:39:44
(Media Comment) | According to Business Report, Deutsche Bank, Sappi declined for a fourth day yesterday after Deutsche Bank cut its share price estimate for the company by 11% to R25.00. This is on the back of falling demand for coated paper and cutbacks in production. Sappi's shares fell 4.17% to R28.75 on Tuesday, 4 February 2008, extending the previous day's 10% drop. |
02 Feb 2009 11:02:32
(C) | |
26 Jan 2009 16:11:27
(Official Notice) | Further to the Sappi South African annual report for the year ended 30 September 2008, shareholders are advised that Sappi has filed its annual report on Form 20-F with the United States Securities and Exchange Commission on 26 January 2009. This document will also be available on www.sappi.com. |
07 Jan 2009 10:11:57
(Media Comment) | Business Day reported Sappi CEO Ralph Boettger as saying that no decision had yet been made to cut output in response to slowing demand. The company's fine paper production in Europe was running at normal levels in January 2009, delaying a decision on a possible second month of cuts. |
31 Dec 2008 12:52:18
(Official Notice) | Shareholders of Sappi are referred to the announcements released by Sappi on SENS on 29 September 2008, 2 October 2008 and 10 October 2008, and the press advertisements published on 1 October 2008, 3 October 2008 and 13 October 2008 regarding the proposed acquisition by Sappi of the coated graphic paper business of M-real Corporation (the "acquisition").
The acquisition was subject to various conditions precedent referred to in the announcements released on SENS on 29 September 2008 and 2 October 2008 and published in the South African press on 1 October 2008 and 3 October 2008. Sappi shareholders are advised that all the conditions precedent to the acquisition have been fulfilled and that the acquisition completed on 31 December 2008. |
23 Dec 2008 13:35:08
(Official Notice) | Reference is made to the Sappi Limited audited annual financial statements for the year ended 30 September 2008 which were published on 4 December 2008, for the purposes of making them available in connection with the renounceable rights offer of 286 886 270 ordinary shares of R1,00 which was being conducted by Sappi at the time. Shareholders were informed that the full annual report, including the annual financial statements would be dispatched later in December 2008.
Shareholders are informed that the full annual report together with the annual financial statements is expected to be dispatched to shareholders on 23 December 2008. The annual report will also be available on line on the Sappi website from the date of dispatch. The annual financial statements have been audited by Sappi's auditors and there have not been any changes to the results published initially in the preliminary announcement of 6 November 2008 and the subsequent announcement of 4 December 2008. Deloitte - Touche's unqualified report is available for inspection at the companies registered office.
The notice of the annual general meeting to be held at the registered office of Sappi Limited, 48 Ameshoff Street Braamfontein on 2 March 2009 at 15h00, is contained in the Annual Report. |
15 Dec 2008 14:31:16
(Official Notice) | Further to the announcement dated 7 November 2008, Sappi shareholders are advised that the results of the renounceable rights offer of 286 886 270 new ordinary shares in the issued share capital of Sappi of nominal value ZAR1 each ("rights offer shares") to Sappi ordinary shareholders ("Sappi shareholders") at a subscription price of R20.27 per rights offer share and in the ratio of six rights offer shares for every five Sappi shares held on the record date of the rights offer, which renounceable rights offer closed on Friday, 12 December 2008 ("the rights offer"), are as follows:
Sappi shareholders and their renouncees subscribed for 285 621 333 rights offer shares, equivalent to 99.56 % of the total number of rights offer shares. Applications were also received for 42 485 200 rights offer shares equivalent to 14.81% of the total rights offer shares, from holders of rights wishing to acquire rights offer shares in addition to their rights entitlements ("excess applications").
Sappi's board of directors has determined that the 1 264 937 rights offer shares in respect of excess applications will be allocated in an equitable manner and cognisance has been taken of the number of Sappi shares held by each applicant prior to such allocation and the number of rights offer shares for which application was made by such applicant.
As the rights offer was fully subscribed after taking into account the excess applications received, the underwriters will not be allocated any rights offer shares.
Cheques refunding monies in respect of unsuccessful excess applications are expected to be posted to the relevant applicants, at their risk, on or about Monday, 22 December 2008 (previously announced as Friday, 19 December 2008). No interest will be paid on monies received in respect of unsuccessful applications. |
04 Dec 2008 09:42:40
(Official Notice) | Shareholders are informed that the annual financial statements are available online on the Sappi website .The annual financial statements have been audited by Sappi's auditors Deloitte - Touche and there have not been any changes to the results published in the announcement of 06 November 2008. Deloitte - Touche's unqualified report is available for inspection at Sappi's registered office. Sappi's full annual report for the year ended september 2008 including the notice of annual general meeting to be held on 02 March 2009 will be published and dispatched to shareholders later this month. |
01 Dec 2008 15:25:27
(Official Notice) | Sappi advises that its issued share capital comprises 239 071 892 ordinary shares of R1.00 each. Of that number, the company holds 9 884 061 shares in treasury through a subsidiary company and a trust leaving 229 187 831 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. The above figures are as at 28 November 2008 and may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Sappi Ltd under the Disclosure and Transparency Rules. |
25 Nov 2008 14:02:32
(Official Notice) | Shareholders of Sappi are referred to the announcement released by Sappi on SENS on Tuesday, 11 November regarding the approval of the rights offer circular and its registration with CIPRO. Shareholders are further advised that the rights offer circular was distributed or posted to certificated shareholders and to dematerialised shareholders (those who have elected to receive a copy) on Monday, 24 November 2008. Shareholders who have not received copies in due course may contact the transfer secretary (Computershare), their advisors, their brokers or the company. The rights offer circular and offering memorandum is available on the company's website. |
18 Nov 2008 16:33:34
(Media Comment) | Sappi is probably taking the biggest risk in its history with its planned acquisition of Finland's M-real for EUR750 million. Finweek wrote that the extent of the risk become public when Sappi said its rights issue would now involve the issue of 286.9 million new shares, double the 239 million shares already in issue. In addition, the shares are been offered at a huge discount. Shareholder activist Theo Botha says that the rights offer has lacked transparency and misled shareholders. However, CEO Ralph Boettger disagrees, saying that the rights offer is not far off where recent rights issues have been. |
14 Nov 2008 17:46:07
(Official Notice) | Shareholders of Sappi are referred to the announcement published by Sappi on SENS dated 3 November 2008 and the press advertisement dated 4 November 2008 in terms of which shareholders approved the acquisition by Sappi of the coated graphic paper business of M-real and the proposed rights offer. Shareholders are advised that the circular in respect of the rights offer will be posted on 24 November 2008 and is available on Sappi's website. |
11 Nov 2008 13:58:32
(Official Notice) | Shareholders of Sappi are referred to the announcement released by Sappi on SENS on Friday, 7 November 2008 regarding the final terms of the rights offer and withdrawal of cautionary. The JSE formally approved the circular to shareholders on Friday, 7 November 2008 and the circular was lodged with CIPRO on Monday, 10 November 2008. Sappi has received confirmation of registration of the circular from CIPRO. The salient dates and times for the rights offer as previously announced remain unchanged. |
07 Nov 2008 11:19:45
(Official Notice) | |
06 Nov 2008 10:38:46
(C) | |
03 Nov 2008 17:38:40
(Official Notice) | Further to the circular to the shareholders of Sappi dated 10 October 2008 regarding the proposed acquisition by Sappi of M-real Corporation's ("M-real") coated graphic paper business (the "proposed acquisition") and the impending rights offer announced on SENS on Friday 31 October 2008 (the "proposed rights offer"), Sappi is pleased to announce that all the special and ordinary resolutions to approve the proposed acquisition and implement the proposed rights offer proposed at the general meeting of shareholders held on Monday, 3 November 2008, (the "general meeting") were passed by the requisite majority of votes. The special resolution passed at the general meeting will be lodged with the Registrar of Companies for registration. The final terms of the proposed rights offer will be published on Friday 7 November 2008. Further details on the proposed rights offer will be contained in a rights offer circular that will be posted to Sappi shareholders in due course. |
03 Nov 2008 08:41:53
(Official Notice) | On 29 September 2008, Sappi announced the proposed acquisition of M-real's Graphic Paper business for EUR750 million. The acquisition is subject to approvals from Sappi shareholders at an extraordinary general meeting ("EGM") and the competition authorities, as well as the implementation of Sappi's planned rights offering. The EU competition authorities have yesterday, 31 October 2008, approved the transaction. The Sappi EGM will be held on 3 November 2008 to consider the transaction. |
16 Oct 2008 09:36:08
(Media Comment) | According to the Financial Mail, Sappi's purchase of Finland's M-Real could benefit the group even if prices fail to rise. The deal is Sappi's biggest ever and promises better margins and shareholder returns in the group's coated fine paper business in Europe. |
10 Oct 2008 16:34:59
(Official Notice) | Shareholders of Sappi are referred to the announcements published by Sappi on SENS dated 29 September 2008 and 2 October 2008; and the press advertisements dated 1 October 2008 and 2 October 2008 regarding the proposed acquisition by Sappi of the coated graphic paper business of M-real (the "acquisition").
Category one circular and general meetings
Shareholders of Sappi are advised that the circular (the "circular") in respect of the acquisition (which is a category one transaction in terms of the Listings Requirements of the Johannesburg Stock Exchange), and which contains a notice convening a general meeting (the "general meeting") of Sappi shareholders for the purposes of proposing, and if deemed fit, passing, inter alia, all resolutions required to be passed to implement the acquisition, has been posted to shareholders on 10 October 2008.
The circular has been signed in Johannesburg on 10 October 2008, by Roeloff Jacobus Boettger and Mark Richard Thompson in their capacity as directors of Sappi and on behalf of all of the other directors of Sappi under powers of attorney granted to them by each other director of the company. A signed copy of the circular is available for inspection by shareholders at the offices of the company.
The circular will also be available on Sappi's website: www.sappi.com. The general meeting will be held on Monday, 3 November 2008, at 15:00 (South African time) at Sappi's offices, 48 Ameshoff Street, Braamfontein, Johannesburg, South Africa.
Conditions precedent
Shareholders of Sappi are advised that the acquisition remains subject to the fulfilment of a number of conditions precedent, details of which are set out in the circular posted to shareholders.
Pro forma financial effects of the acquisition of Sappi
Shareholders of Sappi are advised that the pro forma financial effects of the Acquisition, published in the announcement dated 29 September 2008, have not changed. |
02 Oct 2008 17:29:25
(Official Notice) | Shareholders of Sappi were referred to the conditions precedent from the announcement regarding the proposed acquisition by Sappi of M-real Corporation's coated graphic paper business published on SENS and RNS dated 29 September 2008, the Business Day dated 1 October 2008 and the Beeld dated 1 October 2008, wherein the dates whereby the acquisition will lapse were erroneously stated. Accordingly, shareholders are advised to disregard the previous statement and note that the acquisition will automatically lapse if the rights offering has not been announced by 28 February 2009 or, if announced by that time, if it has not closed and settled by 30 April 2009. |
29 Sep 2008 08:42:58
(Official Notice) | |
01 Sep 2008 14:29:01
(Official Notice) | Sappi advises that its issued share capital comprises 239 071 892 ordinary shares of R1.00 each. Of that number, the company holds 9 892 461 shares in treasury through a subsidiary company and a trust leaving 229 179 431 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. The above figures are as at 29 August 2008 and may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Sappi Ltd under the Disclosure and Transparency Rules. |
01 Sep 2008 09:58:21
(Media Comment) | Sappi CEO Ralph Boettger said in Business Report that "between 500 000 tons and 600 000 tons of coated fine paper capacity would need to be closed" in 2009 to reduce overproduction and boost profits. |
05 Aug 2008 14:15:05
(Official Notice) | Sappi Fine Paper Europe contemplates cessation of production at its Blackburn Mill and intends to cease production from Paper Machine PM5 at its Maastricht Mill in response to overcapacity and unrelenting input cost pressure. As a result of continued overcapacity in the European Coated Fine Paper market, it has not proved possible to recover the sharply increased costs of raw material and energy over recent years. Sappi has therefore undertaken a review of its European production activities. Despite Sappi's best efforts to curb costs, Blackburn Mill and paper machine no 5 at Maastricht Mill have been unable to generate acceptable returns. Consequently, Sappi has entered into a consultation process with employee representatives at both facilities with a view to cease production at Blackburn Mill and PM 5 at Maastricht Mill. The sales office for Coated Fine Paper in the UK will continue operations as will the Specialities Sales and Marketing Organisation. In the event that these production lines do cease to produce then customers will be offered comparable products and services from other Sappi sites in Europe and no supply interruption would be anticipated. Blackburn has the capacity to produce 120 000 tonnes of Graphic coated fine paper annually. Paper machine PM5 at Maastricht has the capacity to produce 60 000 tonnes of speciality paper annually. If the closure of Blackburn mill and PM 5 at the Maastricht mill were to happen and as a result of reallocation of products, Sappi would reduce its Graphic coated fine paper capacity by 190 000 tonnes. |
04 Aug 2008 11:34:54
(Official Notice) | Sappi advises that its issued share capital comprises 239 071 892 ordinary shares of R1.00 each. Of that number, the company holds 9 892 461 shares in treasury through a subsidiary company and a trust leaving 229 179 431 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. The above figures are as at 31 July 2008 and may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Sappi Ltd under the Disclosure and Transparency Rules. |
31 Jul 2008 10:02:59
(C) | Operating profit excluding special items improved to USD88 million from USD81 million last year, but the group operating profit margin excluding special items declined from 6.2% last year to 5.9% this quarter. Special items of USD111 million include an unfavourable plantation price fair value revaluation adjustment of USD105 million and a loss of contribution resulting from a flood at Saiccor amounting to USD6 million. The negative plantation price fair value adjustment was mainly due to a sharp increase in fuel prices. More details of special items are set out later on in of this announcement. An operating loss of USD23 million (including special items) was recorded, compared to an operating profit of USD87 million a year ago. Group sales for the quarter were USD1.5 billion, a 15.2% increase compared to the third quarter last year, mainly as a result of higher sales volumes in our fine paper businesses together with improved selling prices in North America and Southern Africa.
Dividend
No dividend was declared for the period under review.
Prospects
Continued upward pressure on input costs remains the company's biggest challenge in the short term. Further increases are expected in energy, fibre and chemical costs during the fourth quarter. The operating performance for the Southern African and US businesses is expected to remain strong, while margins in all our businesses, particularly in Europe, will be under pressure due to high input costs. The Southern African business will be further impacted by a recovery boiler rebuild at the Usutu mill, which will have an unfavourable impact of approximately USD12 million on operating profit in the fourth quarter. In light of unrelenting input cost increases, it is expected the fourth quarter operating profit, excluding special items, to be lower than the third quarter, however for the full year, the group expects operating profit, excluding special items, to be well above last year. |
29 Jul 2008 08:03:34
(Media Comment) | Business Report quoted Allan Gray portfolio manager Delphine Govender as saying that "as rival mill closures became more likely, the stage was se for ... Sappi's earnings to recover". Sappi has reported poor earnings for ten years, mainly due to overcapacity in the European sector. This has prevented the group from raising prices sufficiently. Allan Gray has a medium- to long-term view on Sappi's recovery. |
01 Jul 2008 13:17:25
(Official Notice) | In accordance with the United Kingdom's Financial Services Authority's Disclosure (FSA's) and Transparency Rules, Sappi advises that its issued share capital comprises 239 071 892 ordinary shares of R1.00 each. Of that number, the company holds 9 922 061 shares in treasury through a subsidiary company and a trust leaving 229 149 831 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. The above figures are as at 30 June 2008 and may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Sappi Ltd under the Disclosure and Transparency Rules. |
15 May 2008 11:04:44
(Media Comment) | According to the Financial Mail, Sappi has developed a plan to turnaround its fine paper division in Europe, but it does not include an exit strategy. CE Ralph Boettger commented that if the company "can just get our businesses in Europe to perform reasonably, Sappi can do extremely well". Boettger added that cost controls and improved efficiencies are not enough anymore and that "we need to address the revenue side". The European division is Sappi's largest business by sales (58%) and net operating assets (41%), but a relatively small contributor to group operating profit, at only 16.5%. |
08 May 2008 07:43:00
(Media Comment) | Business Report noted that Sappi may have its credit rating cut by Moody's Investors Service because of worries that its cash flow as a proportion of debt is too low. Currently Moody's ranks Sappi's bonds one level below investment grade. |
06 May 2008 10:08:53
(C) | Sappi's profitability improved in the quarter compared to a year ago and to the prior quarter. The performance of its southern African businesses was supported by good demand, increasing prices and a weaker Rand against the Dollar. Production was, however, unfavourably impacted by national power curtailment and lower output at Saiccor. Sappi Fine Paper North America continued its improving trend as a result of higher prices and improved operating efficiencies and cost control, but margins remain under pressure from rising input costs. The challenge still remains to restore Sappi Fine Paper Europe to acceptable profitability.
Operating profit excluding special items for the quarter increased by 33% compared to a year ago, to USD97 million. Net finance costs for the quarter were USD27 million compared to USD33 million a year ago. The change reflects the benefit of lower interest rates under certain fixed to floating interest rate swaps implemented in 2002. Basic EPS was USD68c for the quarter (which included the favourable impact of special items) compared to USD25c a year ago. Cash generated by operations was USD176 million for the quarter compared to USD157 million a year ago. |
22 Apr 2008 07:36:48
(Media Comment) | Business Report noted that shares in Sappi fell 0.95% to R96.00 on Monday, 22 April 2008, after Standard - Poor's ("S-P) cut its outlook on the company from stable to negative. S-P cited a "deeper and more prolonged weakening" of the economic climate than previously thought. |
11 Apr 2008 13:29:17
(Official Notice) | In order to facilitate the trading of Sappi shares on the London Stock Exchange on which Sappi has been listed since 1992, Sappi has arranged for its shares to be traded on the London Stock Exchange's SETSmm Trading Platform with effect from 23 April 2008 through the trading of Depository Interests in respect of the underlying Sappi shares. Settlement of trades in the Depository Interests, which will be issued by Capita IRG Trustees Ltd, will be possible through CREST and the Depository Interests may be held and transferred within CREST. |
02 Apr 2008 10:51:18
(Official Notice) | Sappi advises that its issued share capital comprises 239 071 892 ordinary shares of R1.00 each. Of that number, the company holds 10 212 111 shares in Treasury through a subsidiary company and a trust leaving 228 859 781 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. |
13 Mar 2008 09:51:41
(Media Comment) | According to the Financial Mail, some analysts are sceptical about outgoing chairman and CEO Eugene Van As's claim that Sappi is on the mend. Its main business - fine coated paper - has seen margins slump as prices have fallen. But despite this Sappi has poured USD567 million into this division over the past three years when the unit made profits of only USD81 million. This was the lowest return of any of Sappi's divisions. Van As had a hard time explaining this. But, Van As said that Sappi has performed relatively well compared to its competitors and was keen on cutting costs. In this regard, the company's London listing was under review. In addition, finance director Mark Thompson has denied that Sappi has any liquidity problems. |
04 Mar 2008 11:09:48
(Official Notice) | Sappi advises that its issued share capital comprises 239 071 892 ordinary shares of R1.00 each. Of that number, the company holds 10 238 611 shares in Treasury through a subsidiary company and a trust leaving 228 833 281 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. |
03 Mar 2008 17:29:49
(Official Notice) | Sappi's annual general meeting was held in Johannesburg this afternoon (3 March 2008) and all resolutions as proposed at the meeting were duly passed by the respective requisite majorities. Ordinary resolution no three regarding placing 10% of the un-issued shares of the company under the control of the directors as contained in the notice of meeting was withdrawn and not proposed at the meeting. |
03 Mar 2008 15:11:24
(Official Notice) | |
20 Feb 2008 10:51:48
(Official Notice) | Dr Daniel (Danie) Christiaan Cronje has been appointed independent non-executive chairman of Sappi. He succeeds Eugene van As whose impending retirement as chairman and from the board at the annual general meeting on 03 March 2008. |
05 Feb 2008 10:50:35
(Official Notice) | Sappi advises that its issued share capital comprises 239 071 892 ordinary shares of R1.00 each. Of that number, the company holds 10 244 811 shares in Treasury through a subsidiary company and a trust leaving 228 827 081 shares with voting rights, all of which rights are identical with each share carrying the right to one vote. |
03 Aug 2006 12:04:33
(C) | Sales volume increased 8% compared to a year earlier, representing some recovery of market shares. Apparent consumption in the USA grew 13% and in Europe grew 2% compared to the same period last year. Demand in Europe was slower than the prior quarter and prices remained flat compared to the prior quarter and to the year earlier. Net sales for the group of USD1.21 billion (USD1.14 billion) were up 6.1% compared to a year earlier mainly as a result of an increase in the average price realised in South Africa and the regional mix. Operating loss for the quarter was USD34 million compared to a loss of USD188 million last year, which included the USD180 million charge for the impairment of Muskegon Mill. SG-A costs this quarter were significantly higher than comparative periods due to the timing of various grant receipts and fee payments. Net finance costs were USD35 million compared to USD31 million last quarter; USD2 million of the difference was a result of lower net foreign exchange gains. In the comparable quarter last year finance costs were reduced by an adjustment for the fair value of financial instruments of USD19 million. The headline loss per share for the quarter was USD20c and the net loss per share was USD23c.
Outlook
Sappi is confident that its North American and Southern African businesses will return to operating profitability next quarter. For Europe the group is making progress with cost reduction but are unlikely to see much of the effect of price improvements it needs before the end of the third calendar quarter. Sappi may also incur some one-off costs to effect cost improvements in the next six months in Europe. The improvement of the group's cash flow remains a priority. The freeze implemented in April on capital projects except those needed for maintenance of the business and short payback items will continue, providing the company with the flexibility to undertake step change projects from time to time such as the Saiccor expansion. Sappi aims to achieve a meaningful average price increase in Europe towards the end of the summer and the group expects to return to profitability in the next quarter, excluding fair value adjustments. |
28 Jun 2006 09:05:20
(Media Comment) | Business Day noted that Standard - Poor's downgraded Sappi's debt level to BB+ from BBB-. |
05 Jun 2006 12:27:04
(Official Notice) | Donald Gert (Don) Wilson, Executive Director Finance of Sappi, has decided to leave the group at the end of July 2006 to take up a position with another company and will resign from the board on 31 July 2006. The board will make an announcement regarding a replacement in due course. |
08 May 2006 09:56:31
(C) | The group's performance continued to be disappointing in the quarter with the non-cash fair value plantation credit lifting an otherwise negative result to a net profit of USD9 million compared to USD40 million a year earlier. Group sales were USD1.258 billion (USD 1.230 billion) for the quarter, an increase of USD26 million compared to the year earlier mainly as a result of a 3% increase in volume. The group's operating profit for the quarter was USD59 million compared to USD55 million a year ago and USD49 million in the prior quarter. The tax of USD19 million for the quarter represents an effective rate of 68%. Headline earnings for the quarter were USD5c (USD20c) and earnings per share were USD4c (USD18c).
For the interim period the groups sales declined 2.2% to USD2.431 billion (USD2.486 billion) while operating profit increased to USD108 million (USD67 million), a 61.2% rise. Sappi reported a 59.1% drop in net profit to USD9 million (USD 22 million) with headline earning shrinking to USD6c (USD30c).
Prospects
The global coated fine paper industry operating rate is at one of the highest levels seen in at least the last 15 years. The group has already identified significant cost improvements and operating efficiencies which without any benefit of price increases could substantially improve earnings. These improvements are being addressed vigorously and are likely to start having an impact towards the end of the financial year. The group does not expect to see much impact from its turnaround actions next quarter and are likely to see a similar underlying result to the current quarter. |
19 Apr 2006 11:42:58
(Official Notice) | Sappi has concluded a BEE transaction with Lereko Property Company (Pty) Ltd ("LPC"), a company formed by a consortium led by Lereko Investments which will include Sappi South African employees. LPC will acquire a 25% economic interest in Sappi's South African plantation land portfolio for an amount of R224 million through a vendor-financed mechanism.
In order to ensure that the BEE land transaction is sustainable and generates a return for LPC's shareholders, Sappi has agreed to provide financing on the following basis :
*Sappi companies sell to LPC a 25% undivided ownership share in the Sappi land.
*Sappi reserves a real right of use over the 25% undivided ownership share to secure the continued conduct of its commercial forestry operations on the Sappi land.
*Sappi Manufacturing (Pty) Ltd (a wholly owned subsidiary of Sappi) issues preference shares to LPC on which LPC will receive an agreed return for Sappi's right of use over the land. These preference shares are only redeemable on the sale of the Sappi land.
*LPC issues preference shares to Sappi Manufacturing ("the LPC Preference Shares") on which Sappi Manufacturing will receive a funding rate which is lower than LPC could obtain from third party financiers to finance the acquisition of land.
The pro forma financial effects of the BEE land transaction on the earnings, headline earnings, net asset value and tangible net asset value per share of Sappi are not significant. |
31 Mar 2006 17:48:01
(Official Notice) | Sappi today announced that Sir Nigel Rudd will join the Sappi board with effect from 03 April 2006 as a non-executive director. |
06 Mar 2006 14:46:45
(Official Notice) | Sappi's annual general meeting was held on 6 March 2006 and all resolutions as proposed were duly passed by the respective requisite majorities. |
06 Mar 2006 10:03:57
(Official Notice) | |
06 Mar 2006 09:46:06
(Official Notice) | Jonathan Leslie, chief executive officer of Sappi, has tendered his resignation from the company with immediate effect. The board has asked the chairman to assume executive responsibility for the group until a new appointment is made. In accordance with the principles of good corporate governance, the board appointed David Brink as the Senior Independent Non-Executive Director. |
03 Feb 2006 12:07:09
(C) | Sappi broke even in the quarter to December 05, posting headline earnings of 1 UScps against a headline loss of 4 UScps for the quarter to September 05 and earnings of 18 UScps for the year to September 05. It should be noted that prior period figures were restated in terms of IFRS. Operating conditions, particularly in the fine paper business remained difficult with raw material and energy cost escalations not being matched by price increases. Group sales reduced by USD81 million (on the corresponding quarter in 04) to USD1.175 billion. Higher wood, energy and chemical costs resulted in operating earnings of USD49 million (USD109 million loss for the year to September 05) with attributable earnings at exactly zero (attributable loss of USD189 million to September 05 and USD18 million loss for the quarter ended December 04). While the operating profit showed a gain of USD12 million on prior quarter figures, the group said that this disguised a weaker underlying performance when account was taken of a pension restructuring gain of USD 5 million and impairment and restructuring charges reflected in prior periods.
Cash generated by operations of USD122 million was USD20 million lower than that of the prior year as a result of lower volumes and higher input costs. Net debt at the end of the quarter amounted to just over USD2 billion. No dividend was declared.
Prospects
Short term prospects are dependent on price increases and cost control in all operating areas. While the group anticipates some deterioration in earnings per share in the second quarter, the longer term outlook for supply and demand has improved. Positive GDP figures from consuming countries should result in improved advertising spend forecasts which, together with rationalisations, already announced, and higher pulp prices are positive indicators for the group. |
20 Dec 2005 15:06:05
(Official Notice) | With reference to the dividend announcement of 10 November 2005, below are the exchange rates to be applied for payment of the dividend:
USD1 - R6.36517 (ie dividend R1.9096 per share)
USD1 - GBP0.56760 (ie dividend of GBP0.1703 per share).
The relevant dates pertaining to the dividend are as follows:
*Last day to trade to qualify for dividend -- Thursday, 29 December 2005.
*Date on which shares commence trading ex-dividend -- Friday, 30 December 2005.
*Deadline for South African nominee companies to submit details of the number of shares held on behalf of South African resident and non-resident beneficial shareholders so that dividend payments in South African Rands and United States Dollars respectively may be calculated -- 12h00 (South African time), Tuesday 3 January 2006.
*Record date -- Friday, 6 January 2006.
*Payment date -- Monday, 9 January 2006. |
20 Dec 2005 13:07:34
(Official Notice) | With reference to the results announcement for the year ended September 2005 which was published on 10 November 2005, there have been no changes to the results published in that announcement and those contained in Sappi's 2005 annual report. Mailing of the annual report commenced on 20 December 2005. Sappi's annual general meeting will be held at 11h00 on Monday, 06 March 2006 at the offices of Sappi, 48 Ameshoff Street, Braamfontein, Johannesburg, South Africa. |
24 Nov 2005 11:58:13
(Media Comment) | Business Day noted, on 24 November 05, that Standard - Poor's has dropped Sappi's outlook rating from stable to negative due to key factors including higher input costs and weaker prices. |
10 Nov 2005 09:54:52
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09 Nov 2005 10:50:00
(Media Comment) | Analysts' are of the opinion that Sappi may report a 4 cps loss in the group's third quarter results. Business Day noted that one analyst anticipates a loss as high as 23 cps. |
24 Oct 2005 11:18:14
(Media Comment) | Sappi told Business Day that it would increase prices of its flexible packaging grades, label papers and release liners between 6% to 8%. According to investor relations manager, Richard Boorman, the price increases were unlikely to be felt locally since its more aimed at the European market. Strong cost increases in transportation, energy and oil-related paper chemicals are the major factors forcing Sappi to implement the price increases.
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21 Sep 2005 10:55:26
(Official Notice) | Sappi confirmed today that it will be ending its secondary listing on the Frankfurt Stock Exchange (FSE) with effect from 10 November 2005. Sappi`s primary listing is on the Johannesburg (JSE) Securities Exchange. Its shares are also listed on the London (LSE) and New York Stock Exchanges (NYSE). There has been minimal trade in Sappi shares on the FSE with just over 200 000 shares traded on the FSE in 2004, compared with some 304 million shares on the JSE and over 50 million on the NYSE. |
04 Aug 2005 12:24:22
(Media Comment) | Sappi is planning a R2bn expansion of its Umkomaas Sappi Saiccor plant which would be fully operational by the end of 2007. Business Report, in its 4 August 05 edition, said that the group would first undertake an environmental impact assessment before commencing construction. |
28 Jul 2005 09:33:39
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19 Jul 2005 10:50:42
(Media Comment) | Business Day reported, on 19 July 05, that Merrill Lynch decreased its earnings per share forecast of Sappi to USDc30 from USDc48. |
05 Jul 2005 15:06:15
(Official Notice) | Sappi announced, on 5 July 05, the successful completion of its new EUR 600 000 000 Multi-currency Revolving Credit Facility (the `Facility`). The purpose of the Facility is to refinance an existing revolving facility as well as for general corporate purposes. The Facility was significantly over- subscribed.
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13-Apr-2011
(X) | Sappi Ltd, a corporation organised under the laws of the Republic of South Africa (the "company" and, together with its consolidated subsidiaries, "Sappi" or the "group"), was formed in 1936 and is a major, vertically integrated international pulp and paper producer. Sappi is a leading global producer of coated fine paper and chemical cellulose. The group has manufacturing facilities in nine countries, on four continents, and customers in over 100 countries across the globe.
The group is comprised of Sappi Fine Paper North America, Sappi Fine Paper Europe and Sappi Southern Africa reportable segments. Sappi Fine Paper which compromises Sappi Fine Paper Europe and Sappi Fine Paper North America, has manufacturing and marketing facilities in North America, Europe, and Asia and produces mainly high quality branded coated fine paper. It also manufactures uncoated graphic and business paper, coated and uncoated speciality paper, and casting release paper used in the manufacture of artificial leather and textured polyurethane applications. Sappi Southern Africa (Sappi Paper and Paper Packaging, Sappi Forests and Sappy Chemical Cellulose) based in southern Africa, produces commodity paper products, pulp, chemical cellulose, uncoated fine paper and forest and timber products for southern Africa and export markets. The group operates a trading network called Sappi Trading for the international marketing and distribution of chemical cellulose and market pulp throughout the world and of the group's other products in areas outside its core operating regions of North America, Europe and southern Africa. The financial results and position associated with Sappi Trading are allocated to our reportable segments. |
