PaperlinX has been notified by Nippon Paper Group that the Foreign Investment Review Board (FIRB) has advised it has no objection to the purchase of Australian Paper by Nippon Paper.
Approval by FIRB is one of the key conditions for the sale of Australian Paper, with PaperlinX announcing that progress is continuing to be made on the other key conditions for completion of the sale including the approval of PaperlinX’s lenders and note holders.PaperlinX is engaging in discussions with the aim of completing the sale as early as practical for the benefit of all stakeholders. Proceeds of the sale will be applied to reducing debt.
Announced earlier this year, PaperlinX will sell its Australian manufacturing business, Australian Paper, to Japanese-based Nippon Paper for $700m, with the sale expected to be completed by mid 2009.
However the deal will exclude Australian Paper's two Tasmanian mills at Burnie and Wesley Vale, with the company to decide their fate following a review over the next few months.
