The Aditya Birla Group has signed an in-principle agreement to purchase the assets of the Terrace Bay Pulp Mill in North Western Ontario. The Group will make this acquisition through a Special Purpose Vehicle (SPV), AV Terrace Bay Inc. (Canada). Grasim Industries proposes to hold a 40% stake in AV Terrace Bay Inc. and the remaining 60% is proposed to be held by Thai Rayon Public Company, Thailand. Over a period of the next 3 years, Grasim would be contributing $44 million, out of the total equity contribution of $110 million.
In January, 2012, the Terrace Bay Mill was placed under CCAA (Companies Creditors Arrangement Act). The Group will be investing more than $250mn in a phased manner to convert the mill to produce Dissolving grade pulp with a capacity of 2,80,000 tpa. Until the conversion, which is likely to happen in FY 16, the mill will produce and sell Paper grade pulp. The Paper Grade Pulp mill would restart by October 2012. The Terrace Bay Mill is considered an anchor mill due to its location and its significant consumption of residual chips produced by the regional sawmills.
However, the transaction is subject to Court approvals in Canada and other Regulatory approvals in Canada, Thailand and India. It is expected to close by July 31, 2012.
The acquisition of the Terrace Bay Mill and its subsequent conversion into a dissolving grade pulp mill is a major strategic move by the company. In the VSF business, the group enjoys global leadership and to sustain ongoing growth, it has an integrated business model, spanning the entire value chain from plantation to pulp to fibre. The Terrance Bay Mill, upon conversion, will be geared to provide superior quality pulp for its VSF plants worldwide.
| Company Name | CMP |
|---|---|
| Grasim Industries | 2493.85 |
| DCM Shriram | 1065.45 |
| Birla Corporation | 1264.35 |
| Surya Roshni | 547.90 |
| 3M India | 30745.80 |
| View more.. | |
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Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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