Ballarpur Industries’ $500 million deal to sell 98.08 per cent stake in Malaysia’s Sabah Forest Industries (SFI) to Pandawa Saktihas has fallen through with the buyer not meeting conditions after repeated extensions of closure deadline. The latest extension of long Stop Date (lSD) for the deal was announced on May 25 to June 30, 2016 for completion of the deal on the request of the Malaysia-based buyer.
In a regulatory filing, BIlT said: “Since the transaction has not been consummated within the above long stop date, BPH has terminated the SSA and is invoking the performance guarantees of $50 million furnished by the buyer,” the company informed BSE. SFI is controlled by Ballarpur Paper Holdings BV (BPH), a step down subsidiary of Ballarpur Industries. As per share sale agreement (SSA), Pandawa Saktihas had to pay $50 million as an advance by June 3, 2016 and pay the balance equity consideration to acquire 50 per cent equity of SFI by June 30, 2016.