Ballarpur close to acquiring a Malaysian firm

Ballarpur Industries has entered into a conditional agreement on June 04, 2006, for the acquisition of 97.8% equity of Sabah Forest Industries (SFI), Malaysia.

According to a release issued by Ballarpur to the BSE today, SFI operates the largest integrated paper and pulp mill in Malaysia. It has a Paper capacity of 144,000 MTPA and a Pulp capacity of 120,000 MTPA together with various forest concessions w.r.t. 289,000 hectares of land (approx.), valid till December, 2094.

'The consideration for the acquisition is $ 261 million, payable over a period of 18 months from completion. This consideration is proposed to be adjusted, if required, based on the legal, technical, regulatory and financial due diligence that is intended to be carried out by the company', the release added.