Stora Enso Completes Process to Establish Bulleh Shah Packaging JV
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Stora Enso, Finland, and Packages Ltd., Pakistan, have completed the process of establishing a joint venture called Bulleh Shah Packaging (Private) Limited, as announced last September. Stora Enso's initial shareholding is 35% with a commitment to increase the shareholding at the agreed value to 50% at a later stage subject to certain conditions being met. The agreed value for 100% of the joint-venture company is approximately $108 million (EUR 83 million) on a cash and debt free basis. The cash consideration for the 35% shareholding amounted to approximately $39 million (EUR 30 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," said Mats Nordlander, EVP, Stora Enso Renewable Packaging.
Following the acquisition, Stora Enso's share of the Bulleh Shah Packaging joint venture are being reported as part of the Renewable Packaging Business Area, beginning June 1.
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