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Nov. 12, 2019, 10:06 a.m. EST

Paper company Verso's stock soars 20% after news of sale of Maine, Wisc. mills for $400 million

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By Ciara Linnane

SPX

Verso Corp. shares soared 20% Tuesday, after the paper and packaging company said it is selling its Androscoggin mill, located in Jay, Maine, and its Stevens Point mill, located in Stevens Point, Wisconsin, to Pixelle Specialty Solutions LLC for $400 million. The deal, which must be approved by shareholders at a special meeting, is expected to close in the first quarter of 2020, the company said in a statement. The company is expecting to net cash proceeds of $336 million and will return most of that to its shareholders via a stock buyback, dividend or modified Dutch tender offer. The company also said it has named Adam St. John its chief executive officer, replacing interim CEO Les Lederer. St. John was senior vice president of manufacturing for all Verso mills. Shares have fallen 20% in 2019, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.91% has gained 23%.

/zigman2/quotes/210599714/realtime
US : S&P US
3,145.91
+28.48 +0.91%
Volume: 0.00
Dec. 6, 2019 5:07p
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