UPM can afford larger deal now
Finnish paper and pulp company UPM [HEL: UPM] is nearly debt free and can afford to make a large acquisition now, according to Arvopaperi.
The Finnish-language unsourced analysis on the company’s results said that UPM had net debts of EUR 623m at the end of September whereas last year it had debts of EUR 1.5bn.
Because its balance sheet is now healthy, the company can afford to make even larger acquisitions without having to seek help from banks. However, the company can afford to take out more debts in case it needs to make a larger move and the group could afford an additional EUR 2.5bn funding, the item said.