JK Paper Strengthens Packaging Presence with Full Acquisition of Subsidiaries

JK Paper Ltd., a leading Indian paper and packaging board company, announced a strategic move to solidify its position in the growing packaging sector. The company’s Board of Directors, on May 17, 2024, approved the acquisition of the remaining 15% equity stake in its subsidiaries, Horizon Packs Private Ltd (HPPL) and Securipax Packaging Private Ltd (SPPL). This acquisition will transform HPPL and SPPL into wholly owned subsidiaries of JK Paper Ltd., marking a significant expansion within the packaging industry.

Consolidation and Synergies

The primary objective of this acquisition is to achieve complete ownership of both HPPL and SPPL. This consolidation strengthens JK Paper Ltd.’s control and strategic direction for both subsidiaries. Furthermore, the move aligns with the company’s vision to capitalise on the burgeoning packaging sector, particularly within the corrugated packaging segment, where HPPL and SPPL hold established expertise.

Acquisition Timeline and Consideration

JK Paper Ltd. anticipates the acquisition of the remaining 15% stake in each subsidiary to be finalized within four weeks of this announcement. The purchase consideration for this transaction has been established at Rs. 20.62 per equity share (face value Rs. 10) for HPPL and Rs. 744.96 per equity share (face value Rs. 100) for SPPL, subject to adjustments as outlined in the respective share purchase agreements (SPAs).

About HPPL and SPPL

HPPL (Horizon Packs Private Ltd): Established as a manufacturer of corrugated boxes, sheets, and other packaging-related solutions, HPPL contributes significantly to JK Paper Ltd.’s packaging portfolio.

SPPL (Securipax Packaging Private Ltd): Similar to HPPL, SPPL specialises in the production of corrugated boxes, sheets, and various other packaging solutions, further bolstering JK Paper Ltd.’s presence within the packaging industry.

About JK Papers Ltd

Incorporated in 1962, JK Paper Limited is a paper manufacturing company. It offers products in various categories, including coated papers and packaging boards, such as office documentation, uncoated paper and board, and coated paper and board.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.