International Paper Company announced the completion of its previously announced separation and spin-off of its global printing papers business, now operating as Sylvamo Corporation (NYSE: SLVM). Each International Paper shareholder received one share of Sylvamo common stock for every eleven shares of International Paper common stock held on the record date. International Paper continues to own approximately 19.9% of the outstanding shares of Sylvamo common stock.
"The spin-off enhances the strategic flexibility and focus for long-term success and value creation at both companies. International Paper is now a highly-advantaged, corrugated packaging-focused company, well-positioned to grow earnings and cash generation," said Mark Sutton, Chairman and Chief Executive Officer.
Jean-Michel Ribiéras, Chairman and Chief Executive Officer of Sylvamo, said, “We believe in the promise of paper to educate, communicate and entertain. As a standalone company, Sylvamo has the strategic flexibility, strong leadership and teams, best-in-class mills in attractive regions and iconic global brands to create long-term value for our employees, customers and shareowners.”
Sylvamo common stock is expected to begin "regular way" trading on the New York Stock Exchange today under the symbol "SLVM" and the CUSIP number 871332 102.
The receipt of Sylvamo common stock in the distribution is tax-free to International Paper stockholders for U.S. federal income tax purposes, except for the gain or loss attributable to cash received in lieu of fractional shares of Sylvamo common stock. International Paper shareholders are urged to consult with their tax advisors with respect to the U.S. federal, state and local or foreign tax consequences, as applicable, of the spin-off.
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