HELSINKI, Finland, May 31, 2013 (GLOBE NEWSWIRE) -- STORA ENSO OYJ STOCK EXCHANGE RELEASE 31 May 2013 at 14.00 EET
Stora Enso and Packages Ltd. have completed the process of establishing a joint venture called Bulleh Shah Packaging (Private) Limited as announced on 18 September 2012. 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 USD 108 million (EUR 83 million) on a cash and debt free basis. The cash consideration for the 35% shareholding amounted to approximately USD 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," 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.
For further information, please contact:
Mats Nordlander, EVP, Renewable Packaging, tel. +46 1046 72703
Tommy Borglund, SVP, Communication, Renewable Packaging, tel. +46 1046 71709
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
A previous stock exchange release concerning the Bulleh Shah Packaging joint venture is available at www.storaenso.com/press
- 18 September 2012: Stora Enso expands renewable packaging business to Pakistan
Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 28 000 people worldwide, and our sales in 2012 amounted to EUR 10.8 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ
Source:Stora Enso Oyj