Cherat Packaging Limited to Sell Paper Bag Plant for $4.7 Million

Cherat Packaging Limited (PSX: CPPL) has entered into an agreement to sell its Papersack Line V for a total consideration of EUR 4.4 million ($4.7 million) and has received the Letter of Credit for the same from the buyer, the company informed the Pakistan Stock Exchange on Wednesday. The dismantling, packing, loading, and shipment of the Papersack Line to the buyer is expected to take approximately 3 months, after which sales proceeds shall be received by the company, the filing stated. “As already communicated, the Company will be able to meet the demand for papersacks with its Lines III and IV having a combined capacity of 160 million papersacks per annum, in case there is demand for it,” the filing added. CPPL’s main business activities are manufacturing, marketing, and sale of paper sacks, polypropylene bags, and flexible packaging material.