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Ballarpur Ind to sell three units to subsidiary

Ballarpur Ind to sell three units to subsidiary
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First Published: Wed, Jul 25 2007. 12 42 AM IST
Updated: Wed, Jul 25 2007. 12 42 AM IST
New Delhi: Ballarpur Industries Ltd, India’s biggest maker of writing and printing paper, said it will sell its units at Bhigwan and Ballarpur—both in the western state of Maharashtra, and Kamlapuram—in Andhra Pradesh, to a subsidiary and use the money to buy back 40% of its equity and repay debt.
Ballarpur Industries, which is also splitting its stock, will get Rs1,950 crore from the sale of the units to subsidiary BILT Graphic Paper Products Ltd, Ballarpur said Tuesday. Each Rs10 share will be split into five of Rs2 apiece.
The company will get shares and bonds from BILT Graphic. These will be sold to Ballarpur Paper Holdings BV, a Netherlands-based subsidiary, which owns Malaysia’s Sabah Forest Industries Sdn.
Ballarpur’s group director (finance) B. Hariharan said, “On the buyback, the shareholder gets cash and he controls the same economic interest in the company.” Shares of the company have risen 12% this year, compared with a 15% increase in the Sensex. They fell 0.1% to close at Rs120.05 on the Bombay Stock Exchange.
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First Published: Wed, Jul 25 2007. 12 42 AM IST