The agreed value for 100% of the joint-venture company is approximately USD 108 million on a cash and debt free basis. The cash consideration for the 35% shareholding amounted to approximately USD 39 million in the second quarter of 2013.
The joint venture will to a large extent provide packaging products to key local and international customers in the fast-growing Pakistani market.
“We are pleased that we can now start to operate the new joint venture in Pakistan. The market has growing demand for packaging products and paperboard that offers an attractive growth opportunity for us,” says Mats Nordlander, Executive Vice President, Stora Enso Renewable Packaging.
Following the acquisition, Stora Enso’s share of the Bulleh Shah Packaging joint venture will be reported as part of the Renewable Packaging Business Area from 1 June 2013 onwards as an equity accounted investment.
Stora Enso put the number of employees at 950 and said that annual production capacity of paperboard will amount to 360 000 t/y. The partners in the joint venture anticipate sales of $130m in 2012 and $390m when the investments have been completed.
The two parties are also committed to an investment programme during 2013 and 2014 in order to develop the business further.
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