Stora Enso has entered an agreement to sell its 35% share in equity-accounted investment Bulleh Shah Packaging (BSP) to main shareholder Packages.

The cash consideration for the divestment amounts to €6m, while the loss on disposal is nearly €19m.

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The divestment is expected to be completed in the third quarter of 2017.

After the completion of the transaction, Packages will have full ownership of Bulleh Shah Packaging.

Stora Enso CEO Karl-Henrik Sundström said: “Stora Enso is focusing its strategy on delivering profitable growth. Due to a changing business environment in Pakistan, the Bulleh Shah Packaging asset with its product mix and related future outlook is a non-strategic fit in our consumer board roadmap.

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"Stora Enso is focusing its strategy on delivering profitable growth."

“Our focus is on high-quality virgin-fibre products. We are committed to making a responsible divestment and intend to leave a positive contribution in the society.”

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However, the company will continue to support and fund the community investment programmes it has been associated with, in Pakistan.

Packages manufactures packaging materials and tissue products. Its market capitalisation is nearly $590m.

Earlier this month, Stora Enso signed an agreement to divest the business and assets of its Swedish subsidiary Stora Enso Re-board, which produces rigid paperboard for expositions and displays.

The transaction is expected to have no substantial effect on Stora Enso sales and operational EBIT.