The Board of Papyrus Australia Ltd (PPY) announced a proposal to consolidate the Papyrus Egypt (PPYEg) enterprise within Papyrus Australia. This move will strategically align and support the future direction of the company’s operations in Egypt.
Presently, Papyrus Australia owns 50% of the Papyrus Egypt enterprise in its own right and approx. 39% of the PPYEg joint venture partner, Egypt Banana Fibre Company (EBFC), through equity acquired in the past two years as previously announced to the market. This gives PPY a 50% economic interest in PPYEg and 50% of the voting rights in relation to the joint venture.
The directors of both entities have agreed terms for the consolidation process and outcome which will be presented for PPY shareholder approval at an EGM. The terms envisage an allotment of PPY shares to the equity owners of EBFC in consideration of the transfer of their remaining equity in EBFC to PPY. This is subject to an independent valuation of PPYEg which is being undertaken by BDO.
