Inveresk chief executive Alan Walker said the stake had been sold purely because conditions in the market were tough, and because the Swedish paper manufacturer was in the process of sorting itself out.

In July, Klippan announced a cost-cutting programme aimed at making savings of 2.6m, cutting 103 jobs at four mills in the process.

However, Klippan chairman Jan Bernander and his associates still retain their shareholdings in Inveresk.

Inveresk was able to spin the sales of the shares out very quickly to institutions, Walker said.

The latest move follows Klippans closure of Caldwells mill in September with the loss of 160 jobs, less than a year after it bought the customer list and inventory (PrintWeek, 4 September).