New Delhi, May 11 :    New Delhi, May 11:  Bilt Paper Holding, part of the Lalit Mohan Thapar group, has acquired Sinar Mas Pulp & Paper India Limited (SMI) in a deal valued at $ 114.5 million (Rs 538.14 crore). Speaking on the occasion, Gautam Thapar, vice-chairman and managing director of the group said, 'The acquisition will strengthen our position as the largest paper and paper-board manufacturer in India and enable us to emerge as a significant player in the Asian region.' Sinar Mas will be rechristened Bilt Graphic Papers Ltd, subject to shareholders' approval. The deal has two components-a purchase price of $ 62.5 million for the equity and assumption of liability in Sinar Mas amounting to $ 52 million. The deal was financed through ICICI Limited, Standard Chartered Bank and Rabo Bank. He said following the acquisition, Rs 150 crore earlier earmarked for investment in Bilt may be redirected into Sinar Mas. Giving financial details, B. Hariharan, group president and chief finance officer, said of the $ 62.5 million (Rs 290 crore), the promoters have paid Rs 90 crore, while Rs 50 crore is advance against the equity of BILT Paper Holdings. The remaining Rs 150 crore is bridge loans from the financial institutions, to be paid by 12-18 months. Sinar Mas Pulp and Paper (India) Ltd is a wholly owned subsidiary of the Indonesia-based paper major. Sinar Mas had decided to exit India because of financial trouble with the parent company in Indonesia. Sinar Mas, which had been making cumulative losses for some time, made a marginal profit of Rs 6 crore in the last calendar year on a turnover of Rs 400 crore. Thapar said the BILT Group has embarked on a programme of enhancing production capacity by one lakh tonnes by 2003. This, he said, has been financed through sale of assets and a Rs 150-crore bond issue. The production capacity of Sinar Mas is 1.75 lakh tonnes per annum at its Bhigwan plant near Pune. Bilt Paper Holding Company, previously known as APR, used to handle pulp. Prior to its restructuring, BILT had a 50 per cent stake in APR. At present, however, Bilt Paper Holding Company has a small stake in Bilt. The pulp-business of APR was transferred to BILT as part of the second phase of restructuring at Bilt.