Ballarpur Industries Ltd. (BILT) rose as much as 4.8 percent after it terminated its deal to sell its Malaysian unit Sabah Forest Industries Sdn. (SFI) to Pandawa Sakti (Sabah) Sdn. Bhd.
BILT will invoke a performance guarantee of Rs 337 crore, which was part of the share purchase agreement, according to the company's disclosure to the exchanges. BILT cited delays in completion of the deal for the termination.
The original agreement to sell 98 percent stake in SFI to Pandawa Sakti was signed in September 2015, and was expected to be completed in three months. BILT subsequently extended the deadline multiple times, including on May 25, when it set a June 30 deadline for the completion of the deal.
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