Pandawa Sakti to pay $50-mn advance to Ballarpur

Pandawa Sakti had requested an extension of Long Stop Date till June 30.

The Dollar Business Bureau 

Ballarpur Industries, which is in the process of selling 98.08% stake to Malaysia-based Sabah Forest Industries, at a staggering $500 million, will receive $50 million as an advance payment from Pandawa Sakti in early June.

Pandawa Sakti will pay the balance amount to purchase Sabah Forest Industries (SFI) by June 30th.

In a Bombay Stock Exchange (BSE) filing, Ballarpur Industries stated that the buyer will make an advance payment by June 3rd, and balance equity consideration that will complete the purchase will be paid by June 30th.

In addition to the guaranteed $31.5 million, Pandawa Sakti is likely to provide another $17.5 million as an additional security by May 31st.

Based on the formalities that are yet to be completed by the buyer, Pandawa Sakti had requested for an extension of Long Stop Date till June 30th.

Earlier, Ballarpur Industries informed that the closure date of $500 million deal was extended considering the request of Pandawa Sakti.

In September 2015, Ballarpur Industries had declared that the subsidiary unit Ballarpur Paper Holdings BV’s 98.08 stakes will be sold to its Malaysian arm SFI for $500million.

The Dollar Business Bureau - May 26, 2016 12:00 IST