Ballarpur Ind gets $50mn as advance for 98% stake sale in SFI

Ballarpur Industries, which is selling 98.08 per cent stake in Malaysia's Sabah Forest Industries (SFI) for USD 500 million, will receive USD 50 million as an advance by June 3 from the buyer Pandawa Sakti.
Pandawa Sakti will pay the balance equity consideration to acquire 50 per cent of equity of Sabah Forest Industries (SFI) by June 30, 2016
"The buyer will pay USD 50 million as an advance by June 3, 2016 and pay the balance equity consideration to acquire 50 per cent equity of SFI by June 30, 2016," Ballarpur Industries said in BSE filing.
Ballarpur Industries further informed that the buyer is in the process of furnishing us a guarantee for USD 17.5 million as an additional security by May 31, 2016, in addition to existing guarantees for USD 32.5 million making the total guarantees amount to USD 50 million.

"Based on the above and other formalities to be completed by the Buyer for acquisition of 50 per cent equity of SFI, he has requested for an extension of the Long Stop Date (LSD) upto June 30, 2016," the company said.
On April 4, Ballarpur Industries had informed that it has again extended the date for the closure of the USD 500 million deal following a request from Pandawa Sakti.
Last year in September, Ballarpur Industries had announced that its subsidiary Ballarpur Paper Holdings BV would sell entire 98.08 per cent stake in its Malaysian arm Sabah Forest Industries for USD 500 million (about Rs 3,307 crore).