Ballarpur Industries updates on disinvestment in Sabah Forest Industries

Signs share sale agreement at SFI's enterprise value of USD 500 million

Ballarpur Industries has provided update subsequent to board approval for a binding offer for disinvestment of entire equity stake of 98.08% in its step down subsidiary, Sabah Forest Industries Sdn. Bhd., Malaysia (SFI), subject to regulatory approvals of the Government of Malaysia, satisfactory banker's due diligence of prospective buyer and entering into definite Agreements with the prospective buyer.

Ballarpur Industries announced that Ballarpur Paper Holdings B.V., a step down subsidiary of the Company and holding company of SFI (BPH), has signed a Share Sale Agreement (SSA) with M/s. Pandawa Sakti (Sabah) Sdn. Bhd., Malaysia (Purchaser), a subsidiary of Pandawa Sakti Sdn. Bhd. Malaysia and Pandawa Sakti Sdn. Bhd. (Guarantor) for sale of its entire equity stake of 98.08% in SFI, at SFI's Enterprise Value of USD 500.00 million on a cash free debt free basis, subject to necessary adjustment as on the date of closing relating to debt, working capital, currency fluctuation and cash & cash equivalents. The completion of transaction is subject to necessary regulatory approvals of the Government of Malaysia, SFI lenders and completion of certain obligations by the Purchaser, as per SSA. Significant part of the consideration is proposed to be used for debt reduction at the level of SFI, Bilt Paper B.V. and Bilt Graphic Paper Products.

Completion is expected to take place within 3 months from the date of signing.

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