Stora Enso and Packages Ltd. complete joint venture agreement

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.