BILT to invest $ 1 bln in Malaysia's pulp

Singapore, Mar 17 (UNI) Ballarpur Industries Ltd (BILT) will invest around one billion dollars on ancillary industries in support of its 261 million dollars acquisition of Malaysia's largest integrated pulp and paper mill, Sabah Forest Industries Sdn Bhd (SFI), said its chairman Gautam Thapar here today.

According to Kuala Lumpur-based media reports, BILT would also be investing 100 million dollars in expanding capacity at the mill, which it will own about 77 per cent through subsidiary Ballarpur Paper Holdings.

Mr Thapar said the BILT investment would help to achieve operational benchmarks and introduce value-added products like coated paper for SFI, which has a forest reserve of 288,623ha in the East Malaysian state of Sabah on Broneo, including 12,000ha of alienated land.

BILT, supported by JP Morgan, has bought the Kuala Lumpur-based Lion Group's 97.98 per cent stake in SFI.

JP Morgan will hold 20 per cent equity ownership in SFI and the remainder nominal 2.22 per cent is being held by the Sabah State Government.

Mr Thapar, together with the Sabah Chief Minister Musa Aman, and Lion Group's Executive Director Albert Cheng witnessed the acquisition signing in Kota Kinabalu yesterday.

The deal was signed by BILT Managing director R R Vederah, JP Morgan Special Situations Asia Corporation Managing Director Sanjai Vohra, Lion group Chief Executive Officer Ngan Yow Chong and Sabah State Secretary K Y Mustafa.

SFI was incorporated in 1982 as a fully-owned company of the Sabah state government until it sold the 97.78 per cent of shares to Lion Group in 1994, giving the Malaysian company a 99-year forest concession starting from 1996.

UNI