Stora Enso to divest its holding in Bulleh Shah Packaging in Pakistan


Stora Enso has today signed an agreement to divest its 35% holding in the equity accounted investment Bulleh Shah Packaging Ltd. (BSP) to the main owner Packages Ltd. The transaction is expected to be completed in the third quarter of 2017.

The cash consideration for the divestment of the shares is EUR 6 million. The loss on disposal amounts in total to approximately EUR 19 million. These will be recorded as items affecting comparability (IAC) in Stora Enso’s third quarter 2017 results.

“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,” says Stora Enso CEO Karl-Henrik Sundström.

Stora Enso will carry on with the Public Private Partnership with the International Labour Organization (ILO) to promote decent work and to combat child labour in the Punjab Province of Pakistan until the end of 2018. Furthermore, the group will continue to support its share of the two community investment programmes it has been funding in Pakistan. At Stora Enso’s request, an independent third party, KPMG Sustainability Services, is advising Stora Enso on responsible exit from Pakistan.

With this transaction, Packages Ltd. will achieve full ownership of Bulleh Shah Packaging Ltd.

About Packages Ltd 
Packages Limited is a public limited company incorporated in Pakistan and is listed on Pakistan Stock Exchange. It is principally engaged in the manufacture and sale of packaging materials and tissue products. Packages Ltd.’s market capitalisation is approximately USD 590 million. Stora Enso has a 6.04% shareholding in Packages Ltd.

For further information, please contact:
Ulrika Lilja, EVP, Communications, tel. +46 72 221 9228

Investor enquiries:
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 40 763 8767

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil-based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 25 000 people in more than 35 countries, and our sales in 2016 were EUR 9.8 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). 



For further information, please contact:
Ulrika Lilja
EVP, Communications
tel. +46 72 221 9228

Investor enquiries:

Ulla Paajanen-Sainio
SVP, Investor Relations
tel. +358 40 763 8767

Quick links