A report earlier this week by VCCircle, Delhi, India, said that the nation’s largest paper company, Ballarpur Industries Ltd (Bilt), is planning to sell its entire stake of 98.08% in Sabah Forest Industries, one of its subsidiaries, for an undisclosed amount, according to a recent Indian stock market disclosure. 

The company’s board is reported to meet later this week to consider and approve a binding offer received for the business. It did not disclose the name of the proposed buyer. This represents a preliminary consideration as divestment of its entire equity stake is subject to regulatory approvals of the government of Malaysia and satisfying financing bankers’ due dilligence of the prospective buyer, the company said.

Founded in 1988, Sabah Forest Industries manufactures paper and paper-related products. It also offers solid wood-related products such as sawn timber and panel-based products, including dried veneer and raw plywood. It exports products to Iran, Syria, Yemen, South Africa, Jordan, and Saudi Arabia.

In 2007, Bilt acquired its large stake in the Malaysian paper firm for $261 million. It marked the first significant overseas investment by an Indian paper company and remains to date the largest investment by the Indian pulp and paper industry.