SAPPI LIMITED - Proposed acquisition by Sappi of speciality paper business of Cham Paper Group Holding AG (CPG)

Proposed acquisition by Sappi of speciality paper business of Cham Paper Group Holding AG (“CPG”)

                                                                     
Sappi Limited                                                        

(Incorporated in the Republic of South Africa)
Registration number: 1936/008963/06
JSE share code: SAP
ISIN code: ZAE000006284

(‘Sappi’ or ‘the company’)



Proposed acquisition by Sappi of speciality paper business of Cham Paper Group
Holding AG (“CPG”)


Sappi wishes to announce that it has reached an agreement with CPG whereby Sappi will
purchase the speciality paper business assets from CPG consisting of two mills in Italy and a
digital imaging business in Switzerland for a consideration of CHF146.5 million
(approximately US$149 million) pursuant to a Share Purchase Agreement. The closing date
of the acquisition is expected during Q1 2018.

CPG, is a Switzerland-based holding company which operates in the speciality papers
market segment. As part of the transaction Sappi is acquiring the following assets from CPG:

•   Carmignano mill
    This is a non-integrated paper mill with two paper machines. The plant can produce
    100 000 tons of paper and employs 210 people. Paper grades include C1S FlexPack,
    and C1S Label Papers.

•   Condino mill
    This is a non-integrated paper mill with one paper machine. The mill employs 120
    employees and can produce 60 000 tons of paper per year. Paper grades include
    glassine (silicone base paper) and super calendared, uncoated flexible packaging
    papers.

•   Digital imaging business
    This finishing business is located in Cham Switzerland in a 4 000 sqm industrial
    warehouse where the base paper from Condino and Carmignano mills are converted to
    produce 12 000 tons of digital imaging paper.

This transaction represents an opportunity to grow Sappi’s speciality and packaging papers
business by acquiring a producer of coated speciality papers used in a variety of applications
including industrial goods, consumer goods and digital imaging. It will further Sappi’s
diversification strategy by adding capacity and complementing products to the current
speciality and packaging product portfolio and providing a platform for future growth.

Sappi will fund the acquisition through internal cash resources.

The acquisition is subject to a number of conditions precedent including the prerequisite
approvals of certain anti-trust authorities.

The acquisition does not meet the threshold for categorisation in terms of the JSE Listings
Requirements and accordingly is disclosed as a voluntary announcement.

A detailed presentation on the acquisition is available on the Sappi website.




Steve Binnie                                        Berry Wiersum
Chief Executive Officer                             Chief Executive Officer
Sappi Limited                                       Sappi Europe




Sponsor : UBS South Africa (Pty) Ltd
05 December 2017
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