Ballarpur Ind appoints JPMorgan, Citi to manage Dutch unit’s listing

BILT plans to increase its production capacity to more than two million tonne per anum in the next five years and is also looking at acquisition opportunities in the packaging and container boxes segment in the Asia Pacific region.

AVANTHA group flagship Ballarpur Industries (BILT) has appointed JPMorgan and Citigroup to handle the planned flotation of its Dutch unit Ballarpur International Graphic Paper Holdings BV (BIGPH).
    The Gautam Thapar-led group is exploring a Singapore or London listing for the company, although it is more inclined towards London, Avantha's finance director B Hariharan told ET NOW. The group, according to people familiar with the listing plans, is targeting a valuation of more than $1 billion for the Dutch firm.
    Nearly 80% is owned by BILT subsidiary, Ballarpur International Holdings (BIH) BV. The company also counts JP Morgan and the Government of Singapore Investment Corporation (GIC) as its shareholders. JP Morgan and GIC own 7.6% and 12.9% of the company respectively, after they collectively invested $175 million in 2008, giving BIGPH an equity valuation of $825 million.
    "For our investors to make a profitable exit through the listing, we should be able to command a much higher valuation than that," said Mr Hariharan.
    BILT could use proceeds from the proposed listing to expand its Malaysian subsidiary Sabah Forest Industries (SFI), which it acquired in 2007 for $261 million. It will also use some of the money to expand capacity at its Ballarpur, Bhigwan and Kamalpuram plants and to retire some of its debt.