Ballarpur Industries jumps on selling entire assets of Malaysian unit

Ballarpur Industries rose 5.68% to Rs 14.69 at 12:01 IST on BSE after the company said it will sell entire assets of its Malaysian unit, Sabah Forest Industries.

The announcement was made after market hours yesterday, 5 April 2018.

Meanwhile, the S&P BSE Sensex was down 22.50 points, or 0.07% to 33,574.30.

On the BSE, 8.81 lakh shares were traded in the counter so far compared with average daily volumes of 4.18 lakh shares in the past two weeks. The stock had hit a high of Rs 15.65 and a low of Rs 14.55 so far during the day. The stock hit a 52-week high of Rs 22.70 on 15 May 2017. The stock hit a 52-week low of Rs 11.30 on 5 October 2017.

Ballarpur Industries announced that a sale and purchase agreement has been entered into between Sabah Forest Industries Sdn. Bhd. and Pelangi Prestasi Sdn. Bhd. (the buyer) on 4 April 2018 for the sale of entire assets (including procurement of fresh timber licenses from the State Government of Sabah) of Sabah Forest Industries Sdn. Bhd. (a step down subsidiary of Ballarpur Industries), for consideration of RM 1.2 billion (approximately $310 million). The buyer has deposited 10% of the consideration in cash.

The said agreement is subject to necessary corporate and regulatory approvals, including appropriate court orders of the High Court of Sabah & Sarawak, Malaysia.

The buyer is a part of Albukhary Group of companies, Malaysia promoted by Syed Mokhtar Albukhar.

On a consolidated basis, Ballarpur Industries reported net loss of Rs 363.95 crore in Q3 December 2017 as against net loss of Rs 435 crore in Q3 December 2016. Net sales rose 111.47% to Rs 699.79 crore in Q3 December 2017 over Q3 December 2016.

Ballarpur Industries is India's largest manufacturer of writing and printing paper.

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