Lahore: Stora Enso, one of the world’s biggest manufacturers of graphic papers for newsprint and magazine paper announced on Wednesday that it had offloaded 35pc of its holding equity in Bulleh Shah Packaging Limited (BSP).
The decision comes amidst a fall in demand for graphic paper because of publishing moving online and the company’s decision to divert its focus more towards pulp and packaging board.
While reporting its earnings on Wednesday, Stora Enso said it had isolated its paper divisions legal structure from other businesses, which according to an analyst may be an indicator towards restructuring.
According to details available, Stora Enso inked an agreement with Packages Limited to divest 35pc of its equity stake in Bulleh Shah Packaging Limited.
Packages Ltd will now own a 100pc equity stake in Bulleh Shah Packaging Ltd. KPMG Sustainability Services has been hired by Stora Enso to provide it advise on making a responsible exit from the Pakistani market.
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.”
At the time of filing this report, Packages Limited shares were trading at Rs699.90 down 0.67pc on the Pakistan Stock Exchange (PSX).