Ballarpur Industries has delayed its plan to sell stake in its step-down subsidiary Sabah Forest Industries Sdn Bhd, Malaysia, to Pandawa Sakti (Sabah) Sdn Bhd till March 31.
Ballarpur Industries’ arm Ballarpur Paper Holdings BV had in September signed a share sale agreement with Malaysia’s Pandawa Sakti for selling 98.08 per cent stake in Sabah Forest Industries for $500 million.
The company is planning to use the proceeds from the Sabah Forest stake sale to pare debt in some subsidiaries. The delay in stake sale notwithstanding, a surety bond worth $22.50 million issued by Pandawa Sakti to Ballarpur Paper Holdings continues to remain valid.
Ballarpur Industries is engaged in manufacturing of wide range of papers such as coated wood free, uncoated wood free, copy paper, packaging, business stationery, industrial grades and speciality and fine paper.
