UPDATE 1-PaperlinX plans statement on unit sale to Nippon Paper
MELBOURNE, June 1 (Reuters) - PaperlinX Ltd (PPX.AX), Australia's top paper merchant, plans to make an announcement in the next two days on the A$700 million ($561 million) sale of its Australian Paper business to Japan's Nippon Paper Group (3893.T).
PaperlinX revealed its intentions on Monday in calling a halt to trade in its shares pending the announcement.
The deal, agreed in February, was due to close mid-year, pending approval of PaperlinX's lenders. [ID:nT97347]
"We are in final stages of talks, and we are making progress," said Nippon Paper spokesman Koji Yoshino in Tokyo, declining to comment further.
PaperlinX's lenders in April extended waivers to its debt covenants to May 31, pending completion of the sale to Nippon Paper or other arrangements. The Australian company agreed to pay higher interest costs and a special fee to secure the waivers.
PaperlinX shares last traded at A$0.54, valuing the group at A$326 million.
An external adviser to PaperlinX declined to comment. ($1=A$1.25) (Additional reporting by Taiga Uranaka in Tokyo) (Reporting by Sonali Paul; Editing by Mark Bendeich)
