International Paper recently announced that the company had reached an agreement with relevant parties to sell 50% of its equity in Ilim SA to the joint venture partners of Ilim Joint Venture for US $484 million (USD). The sale still needs to be approved by the Russian regulatory authorities.

The transaction is based on the valuation of about 3.1 times of the EBITDA of the whole year of the company in 2022, indicating that the total enterprise value (TEV) of the company is about 3.5 billion dollars.

In 2022, the annual unaudited EBITDA of Elim Holdings was 1.11 billion US dollars; As of December 31, 22, unaudited TEVs included $2.45 billion in net debt.

International Paper also received the intention of its joint venture partner, who is willing to purchase 2.39% of the former’s shares in JSC Ilim Group at a price of US $24 million in accordance with the terms and conditions to be agreed. International Paper intends to sell these shares and divest other intangible residual interests related to Ilim to its joint venture partners.