Stora Enso to Divest its Holding in Bulleh Shah Packaging in Pakistan
"Due to a changing business environment in Pakistan, the Bulleh Shah Packaging asset with its product mix and related future outlook is a non-strategic fit in our consumer board roadmap." – Karl-Henrik Sundström, CEO, Stora Enso.
July 26, 2017 (Press Release) - Stora Enso has today signed an agreement to divest its 35% holding in the equity accounted investment Bulleh Shah Packaging Ltd. (BSP) to the main owner Packages Ltd. The transaction is expected to be completed in the third quarter of 2017.
The cash consideration for the divestment of the shares is EUR 6 million. The loss on disposal amounts in total to approximately EUR 19 million. These will be recorded as items affecting comparability (IAC) in Stora Enso's third quarter 2017 results.
“Stora Enso is focusing its strategy on delivering profitable growth. Due to a changing business environment in Pakistan, the Bulleh Shah Packaging asset with its product mix and related future outlook is a non-strategic fit in our consumer board roadmap. Our focus is on high quality virgin-fibre products. We are committed to make a responsible divestment and intend to leave a positive contribution in the society,” says Stora Enso CEO Karl-Henrik Sundström.
Stora Enso will carry on with the Public Private Partnership with the International Labour Organization (ILO) to promote decent work and to combat child labour in the Punjab Province of Pakistan until the end of 2018. Furthermore, the group will continue to support its share of the two community investment programmes it has been funding in Pakistan. At Stora Enso's request, an independent third party, KPMG Sustainability Services, is advising Stora Enso on responsible exit from Pakistan.
With this transaction, Packages Ltd. will achieve full ownership of Bulleh Shah Packaging Ltd.
About Packages Ltd
Packages Limited is a public limited company incorporated in Pakistan and is listed on Pakistan Stock Exchange. It is principally engaged in the manufacture and sale of packaging materials and tissue products. Packages Ltd.'s market capitalisation is approximately USD 590 million. Stora Enso has a 6.04% shareholding in Packages Ltd.
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. To learn more, please visit: www.storaenso.com
SOURCE: Stora Enso