In a statement to Bursa Malaysia, Genting said its 97.7% owned subdiary, Genting Sanyen (M) Sdn Bhd (GSM), which owns a paper mil and two corrugated mills, entered a share sale agreement with Paperbox for the disposal yesterday.
Consequently, Genting will also sell its 25 million 14% redeemable non-convertible cumulative preference shares in GSM ‘ s unit, Genting Sanyen Industrial Paper Sdn Bhd. The statement added.
Genting has invested RM 928 mil in its 97.7% state in GSM, whose paper business commenced in 1994. Some of those investments were made in GSM ‘ s packaging business between 1998 and 2001. The disposal will result in a one off loss of about RM179mil for the group.
Paper box is a special purpose vehicle established by funds advised by CVC Asia Pacific Ltd, a leading international private enquiry firm managing over US$ 24 bil in funds. CVC has acquired several wood and paper related companies, including Smurfit Kappa, lecta Laminex and Plantation T imber Products.