MUMBAI, Jan 22, 2008 (AsiaPulse via COMTEX) - Paper maker Ballarpur Industries Ltd (BILT) (BSE:500102) on Monday said two leading private equity firms will invest US$175 million to acquire a 21 per cent stake in the company's Dutch subsidiary.
The company informed the Bombay Stock Exchange that private-equity firms --Singapore-based GIC Special Investments Pte Ltd and JP Morgan's Principal Investment Management Group -- would invest US$175 million in Ballarpur Paper Holdings (BPH), the Netherlands-based subsidiary of BILT.
BILT had created BPH as a special purpose vehicle for the acquisition of Malaysia-based paper mill Sabah Forest Industries Sdn Bhd. BPH owns 97.8 per cent in SFI and the balance is held by the Government of Sabah.
BILT's three undertakings at Bhigwan, Ballarpur and Kamalapuram would be transferred to BILT Graphic Paper Products Ltd (BGPPL) for a sum of Rs 1,9.5 billion. BILT would further transfer its investments in BGPPL to BPH.
BPH would utilise the funds to be received from the PE firms to part finance consideration payable to BILT for sale of its investments in BGPPL, the company said.
Shares of BILT closed at Rs 143, down 7.14 per cent on the BSE.
(PTI)
http://www.tradingmarkets.com/.site/news/Stock%20News/1009825/
