DS Smith Disposal of Higher Kings Mill Paper Mill

DS Smith Plc (DS Smith) announces that its DS Smith paper business has entered into a binding legal agreement for the sale of its Higher Kings Mill paper mill in the United Kingdom to Asia File Corporation Berhad, for an enterprise value of £4.6 million payable in cash on completion. As at 30 April 2011, the net assets of the Higher Kings Mill business (on a cash and debt free basis) were £3.8 million and gross assets were £8.0 million. Higher Kings Mill is a leading European producer of filing and educational papers, producing 34 thousand tonnes of paper per annum. The sale is expected to be completed on 30 September 2011.