Tanoto in Malaysian deal

Tanoto in Malaysian deal

SINGAPORE (Reuter): Asia Pacific Resources International Holdings Ltd. (APRIL) said yesterday it had been notified by its majority shareholder -- the Sukanto Tanoto family -- of its intention to take a majority stake in Sarawak Pulp & Paper.

The project, based on reforestation, is a joint venture between RGM International and PWE Industries Bhd, a Malaysian- listed manufacturing company.

APRIL said in a statement that Sukanto Tanoto, who represents the company's majority shareholder, had indicated his intention to allow APRIL to buy his interest in the project. It did not say when.

APRIL would also have access to the pulp produced by the project through sales agency arrangements when the mill begins production in 1998. Details will be finalized in the next few months, it said.

APRIL, listed on the New York Stock Exchange, produces pulp, paper and rayon fiber for Asia-Pacific markets. It owns three companies in Indonesia -- PT Inti Indorayon Utama.