Singapore's Unifiber to buy Indonesian Kiani Kertas for $220 million

Feb 20, 2006. /Lesprom Network/. United Fiber System Ltd said it will pay $220 million to the vendors of Kiani Kertas, XFN-ASIA reported. It officially takes over from Kingsclere Finance Ltd the exclusive sale and purchase agreements signed with the pulp mill's owner Fayola Investment. The amount will be paid via a combination of cash, zero-coupon mandatory convertible bonds maturing 12 months after completion of the deal and promissory notes to be redeemed over a period of 33 months, it said. "To take on the agreements is a significant step forward for UFS in acquiring Kiani Kertas," UFS chief executive officer Kishore Dass said in a statement. Indonesian investment firm Kingsclere, which is owned by Unifiber's second-largest shareholder Wisanggeni Lauw, entered into the agreements with the owners of Kiani Kertas on December 5, 2005.