Ballarpur Industries to split stock, buyback BILT

New Delhi, July 24 (UNI) Country's largest paper-makes Ballarpur Industries Ltd today said it will undertake a stock split from Rs 10 to Rs 2 and buyback of BILT Graphic Paper Products Ltd (BCPPL) units at Bhigwan , Ballarpur and Kamlapuram, with an aim to reorganise the company.

Ballarpur Industries has decided upon the slump exchange for the three units at a value of Rs 1,950 crore, said a statement.

BILT will issue equity shares of Rs 450 crore and non-convertible redeemable debentures for Rs 1,500 crore to Ballarpur Industries.

Ballarpur Industries has two other unlisted subsidiaries incorporated in Netherlands, namely Ballarpur International Holdings BV and Ballarpur Paper Holdings BV (BPH). BPH will now hold the shares of BILT.

BPH will raise long term debt and private equity to fund the acquisition.

According to the scheme, a stock split and a simultaneous buyback of 40 per cent of the paid up capital of the company will be undertaken. In addition, small shareholders holding 1,000 equity shares or less of the company prior to the stock split under the scheme, shall have the option to sell the shares in entirety.

Under the stock split, a single share of the company will be split into five shares of the face value of Rs two each. The non-split share has been valued at Rs 125, which is higher than the closing price of the shares of the company on July 23, 2007.

The buyback price for the share of the face value of Rs two for purchasing 40 per cent of the post-spilt stock from the paid-up capital of the company and will be bought back with two shares of the face value of Rs two for the purchase price of Rs 50.

Ballarpur Industries Ltd said BPH would have adequate funds to buy its investments, equity shares of BGPPL and the debentures of BCPPL.

The company added that all shareholders would be required to sell 40 per cent of their holdings and BILt will use Rs 940 crore of consideration for the buyback.

The share capital of the company will get reduced to 10.71 crore shares from 18.62 crores shares post buy back.

Ballarpur Industries said as a goodwill measure small shareholders (holding up to 1,000 shares pre-split and 5,000 shares post split) who opt to offer the entirety of their shareholding, the residual 60 per cent of the shareholding will be bought back at Rs 30 per share of the face value of Rs two.

UNI