Finland based pulp and paper manufacturer Stora Enso has agreed to sell its 35% stake in Bulleh Shah Packaging (BSP) to the majority share holder Packages Ltd for €6m.
Bulleh Shah Packaging, based in Pakistan, is a joint venture formed between Stora Enso and Packages Limited, that holds 65% stake.
The transaction, which will close in the third quarter of 2017, will enable Packages Ltd to secure 100% ownership of BSP.
Packages Ltd manufactures and sells packaging materials and tissue products. The company's market capitalisation is about $590m.
In 2017 Q3 results of Stora Enso, the loss on disposal amounts totaling to €19m will be included as items affecting comparability (IAC).
Stora Enso CEO Karl-Henrik Sundström said: “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.”
Till the end of 2018, Stora Enso will promote decent work and fight protest against child labour in the Punjab Province of Pakistan by joining forces with Public Private Partnership and International Labour Organization (ILO).
Stora Enso, established on 29 December 1998, has its head offices in Helsinki and Stockholm. It employs more than 25000 employees across 35 countries.
The firm specializes in packaging, wood products, paper, pulp, biomaterials, wooden construction, bio-composite, pellets, intelligent packaging, paperboard and packaging solutions.