Ballarpur Paper sees infusion of $175 million from PE firms

New Delhi, Jan 21 (UNI) Ballarpur Industries Ltd (BILT) today said it approved equity investments of 175 million dollars by private equity investment firms, GIC Special Investments Pte Ltd and JP Morgan's Principal Investment Management Group in Ballarpur Paper Holdings B V (BPH).

BPH is a wholly owned step down subsidiary of BILT in Netherlands and the capital infusion will entitle the two PE firms to about 21 per cent equity stake, said a statement.

BILT had created BPH as a special purpose vehicle for the acquisition of Sabah Forest Industries Sdn Bhd (SFI), the largest integrated pulp and paper mill in Malaysia.

BPH owns 97.8 per cent of the capital in SFI and the balance 2.2 per cent is held by the Government of Sabah.

After the financial restructuring the three undertakings of BILT at Bhigwan, Ballarpur and Kamalapuram were transferred to its wholly owned subsidiary in India, BILT Graphic Paper Products Ltd (BGPPL) for a value of Rs 1,950 crore.

BILT will now transfer its investments in BGPPL to BPH and utilize the funds to be received from the PE firms to part finance consideration payable to BILT for sale of its investments in BGPPL.

UNI PBB PDT RN1605