Shares of Ballarpur Industries surged 12 percent intraday Friday as the company is going to sell entire assets of its Malaysian unit, Sabah Forest Industries Sdn Bhd.
A sale and purchase agreement has been entered into between Sabah Forest Industries Sdn. Bhd. and Pelangi Prestasi Sdn. Bhd. for the sale of entire assets (including procurement of fresh timber licenses from the State Government of Sabah) of Sabah Forest Industries Sdn. Bhd for consideration of RM 1.2 billion ( approximately USD 310 million).
The buyer has deposited 10% of the consideration in cash.
Sabah Forest Industries Sdn. Bhd is a step down subsidiary of the company.
The said agreement is subject to necessary corporate and regulatory approvals including appropriate court orders of the High Court of Sabah & Sarawak, Malaysia.
The buyer is a part of Albukhary Group of companies, Malaysia promoted by Sye Mokhtar Albukhary.
At 14:21 hrs Ballarpur Industries was quoting at Rs 14.75, up Rs 0.85, or 6.12 percent.
Posted by Rakesh Patil