Sappi Provides Update on Circular Distribution for Proposed UPM Joint Venture

Sappi Limited has issued an update to shareholders regarding the timing of the circular associated with its proposed joint venture between Sappi Papier Holding GmbH and UPM-Kymmene Corporation for graphic paper operations in Europe.

The company reiterated that the proposed transaction, first announced on 4 December 2025 and 2 February 2026 via the JSE’s Stock Exchange News Service, is classified as a Category 1 transaction under the JSE Listings Requirements. As such, it requires approval from Sappi shareholders through ordinary resolutions to be presented at a general meeting.

Sappi confirmed that the distribution of the shareholder circular remains conditional on the signing of definitive agreements related to the transaction. The circular will include details of the proposed joint venture and information necessary for shareholders to evaluate and vote on the transaction.

According to the update, Sappi and UPM continue to make progress in negotiations and are working toward signing definitive agreements within the first half of the 2026 calendar year. Once these agreements are finalized, the circular will be published and distributed in compliance with regulatory requirements.

The company added that shareholders will be notified in due course of key dates and times, including the schedule for the general meeting at which the proposed resolutions will be considered.

The planned joint venture forms part of broader strategic efforts involving graphic paper assets in Europe, subject to shareholder and regulatory approvals.