International Paper has agreed to sell its controlling stake in New Zealand forest products company Carter Holt Harvey (CHH) for N$1.65bn.

The company has signed a lock-in agreement with Rank Group Investments Ltd to sell its 50.5% stake in CHH, representing 660,843,571 ordinary shares, in a full takeover offer to all shareholders.

The offer price of N$2.50 is 30% higher than the share price prior to International Paper announcing its intention to possibly sell its CHH holding. An offer is expected to be launched within four to six weeks.

&#8220While we remain confident in Carter Holt Harvey’s leadership and strategy to grow and improve, our companies’ strategies and priorities have evolved and the business climate has changed ”

John Faraci, International Paper chairman and chief executive

International Paper said it is looking to focus on its core uncoated papers and packaging businesses.

John Faraci, the US company’s chairman and chief executive officer, said: “CHH is a solid business with talented employees. While we remain confident in the company’s leadership and strategy to grow and improve, our companies’ strategies and priorities have evolved and the business climate has changed.”