Ballarpur Industries sells Malaysian arm Sabah Forest for US$310 million - Reuters

 

Ballarpur Industries sells Malaysian arm Sabah Forest for US$310 million

Ballarpur Industries sells Malaysian arm Sabah Forest for US$310 million

Mon Apr 9, 2018 - 04:56am UTC

Ballapur Industries, Sabah Forest

9/4/2018 – India’s largest manufacturer of writing and printing paper has recently forged an agreement to sell its Malaysian unit Sabah Forest Industries to Pelangi Prestasi Sdn Bhd for MYR1.2 billion (about US$310 million).

The agreement was signed on Wednesday, April 4th, and involves Sabah Forest’s entire assets including the procurement of fresh timber licenses from the state’s government of Sabah.

According to Ballarpur, the buyer has already deposited 10 percent of the total consideration in cash while still awaiting the necessary corporate and regulatory approvals, including appropriate court orders of the High Court of Sabah & Sarawak, Malaysia.

Pelangi Prestasi is a unit of Albukhary Group which operates in banking, seaport, e-commerce, construction, engineering, book retail, sugar, palm oil plantations, and airport management sectors.

Sabah Forest Industries is one of Malaysia’s largest timber growers and wood processors. It manages a forest estate totaling 288,000 hectares, pulp and paper manufacturing facilities, as well as an integrated timber complex consisting of a sawmill and a veneer and plywood factory.

Ballarpur acquired Sabah Forest in 2007 for US$261 million, making the first overseas acquisition by an Indian paper company. It began its attempts to sell its Malaysian forest unit in 2016 with Pandawa Sakti but the deal did not push through.

Ballarpur is part of the Avantha Group, which is one of India’s leading business conglomerates with interests in diverse sectors including power transmission and distribution equipment and services, paper and pulp, energy and infrastructure, food processing, forestry, chemicals, ITs, and ITeS.

Shares of Ballarpur Industries increased to 12 percent intraday Friday as the company was going to sell Sabah Forest Industries Sdn Bhd.

For content enquiry, please reach us at

Latest News >

Ballarpur Industries sells Malaysian arm Sabah Forest for US$310 million

9/4/2018 – India’s largest manufacturer of writing and printing paper has recently forged an agreement to sell its Malaysian unit Sabah Forest Industries to Pelangi Prestasi Sdn Bhd for MYR1.2 billion (about US$310 million). The agreement was signed on Wednesday, April 4th, and involves Sabah Forest’s entire assets including the procurement of fresh timber licenses […]

04:56am UTC

Catcha Group to lead seed investment in Wedding Marketplace Hitchbird

Hitchbird will use the capital for hiring talent, product development, and marketing.

10:45am UTC

Vertex Ventures to co-lead US$11 million round in Israeli transcription startup Verbit

Verbit uses AI to combine software with human transcribers to improve quality, speed and price of services.

06:29am UTC

Indonesia’s Electronic Signature Startup PrivyID secures US$5 million in Series A

PrivyID is Indonesia’s DocuSign and it enables users and enterprises to digitally sign and transfer document online with an integrated audit trailer.

05:03am UTC

Online Content Marketplace GetCRAFT in talks to raise US$5 million Series A by 2018

GetCRAFT is an online content marketplace, which connects brands and agencies in Southeast Asia with content creators and marketers across the globe.

05:05am UTC