Ballarpur Industries Limited (BSE:500102) is in negotiations to sell its Malaysian subsidiary Sabah Forest Industries Sdn. Bhd. to Chinese company Nine Dragons Paper (Holdings) Limited (SEHK:2689) in a $350 million deal.

Negotiations have been ongoing. There have been issues like valuation mismatch but these are likely to get sorted now. However, there is still no guarantee that discussions will lead to a transaction.

Ballarpur Industries is engaged in manufacturing of wide range of papers such as coated wood free, uncoated wood free, copy paper, packaging, business stationery, industrial grades and specialty and fine paper.