In an effort to reduce costs and strengthen its financial position, PaperlinX Limited (ASX:PPX) has announced key aspects of its strategic review.
The paper manufacturer says it has entered into an agreement to divest its US operations for $US76 million and sell its Italian operations for about $56 million.
PaperlinX’s chairman Harry Boon says, the initiatives and restructuring plan are expected to provide a significantly lower operating cost base and improve operating liquidity.
Mr boon also said it has abandoned talks in regards to any takeover offers for the company.
PaperLinX expects to report a full year net loss of $171 million.
PaperlinX reported a net loss of $60.9 million in the first half of the 2012 financial year.
