Ballarpur Paper Holdings, a subsidiary of Ballarpur Industries Limited, recently announced plan to divest its entire stake of 98.08 percent in Malaysia’s Sabah Forest Industries.
The Indian firm has entered into a Share Sale Agreement with Pandawa Sakti. The completion of transaction, worth USD 500 million, is expected within three months. The transaction is subject to satisfaction of certain conditions precedent as set out in the Definitive Agreement, including approvals from the Government of Sabah (Malaysia) and Pandawa Sakti's financing agencies.
Ballarpur Industries Limited, part of Avantha Group, is engaged in manufacturing writing and printing paper.
Gautam Thapar, Chairman, Avantha Group, said, “Given the prevailing market conditions, and the Company’s strategy of divesting assets at the right prices to maintain a healthy balance sheet, the divestment of SFI is aligned with BILT’s objectives. The deal is expected to improve the leverage and strengthen the capital structure of the Company significantly.”
