Ballarpur Industries today said it has again extended the date for the closure of the USD 500 million deal to sell its 98.08 per cent stake in Malaysia's Sabah Forest Industries Sdn following a request from the buyer, Pandawa Sakti.
The company on March 2 stated that date for the completion of the sale had been extended up to March 31, 2016, based on satisfactory discussions and written request of the purchaser.
"The Buyer has confirmed that he has obtained necessary commitments for disbursement of funds by end April, 2016. Based on the above and other formalities to be completed by the buyer for closure of the deal, he has requested for an extension of the long stop date (LSD) upto May 16, 2016," Ballarpur Industries said in BSE filing.
The buyer has furnished us another guarantee for an amount of USD 10 million as an additional security (earlier performance guarantees of USD 22.50 million executed in favour of BPH (Ballarpur Paper Holdings) continue to be valid), it added.
"In view of the aforesaid progress, ongoing discussions and the buyer having moved substantially forward in his financing arrangements to consummate the transaction, the LSD for sale of entire SFI equity stake has been extended upto May 16, 2016," the company said.
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 (SFI) for USD 500 million (about Rs. 3,307 crore).
