Divestment of Genting's Paper and Packaging Businesses
The paper and packaging division comprises of two paper mills, whose combined capacity represents 30% of Malaysia’s total industrial brown paper output, and two corrugated mills which have an estimated 15% market share in Malaysia.
24/03/07 Genting Berhad announced that its 97.7% owned subsidiary, Genting Sanyen (Malaysia) Sdn Bhd (“GSM”) has agreed to divest its paper and packaging businesses to Paperbox Holdings Limited, a special purpose vehicle established by funds advised by CVC Asia Pacific Limited for a total cash consideration of RM745 million.
The divestment is subject, inter alia, to approvals from the relevant authorities, including the Ministry of International Trade and Industry, the Foreign Investment Committee and Bank Negara Malaysia.
As part of an on-going review of its operations and interests worldwide, the Board of Genting has concluded that it is more optimal for the Genting Group to divest the paper and packaging division to focus on growing and strengthening its core businesses.
The paper and packaging division comprises of two paper mills, whose combined capacity represents 30% of Malaysia’s total industrial brown paper output, and two corrugated mills which have an estimated 15% market share in Malaysia.
The management and staff of the paper and packaging division have successfully built the business into a leading paper and packaging operation in Malaysia and the Board of Genting Berhad would like to take this opportunity to express their appreciation and thanks to the team.
Commenting on the sale, Justin Leong, Genting's Head of Strategic Investments & Corporate Affairs, said: "We believe we have achieved a full and fair price for our paper and packaging assets and that we have sold it to a very credible buyer who has exciting plans to invest further to expand the business. CVC's investment also represents a vote of confidence in Malaysia by the foreign investment community." JPMorgan acted as exclusive financial advisor to GSM on this transaction.
