Norske Skog has entered into an agreement to sell the remaining 49% of the shares in Norske Skog Pisa in Brazil to Papeles Bio Bio SA (formerly Norske Skog Bio Bio). Source: Timberbiz
Group BO/Pathfinder, a consortium of Chilean investors, controls Papeles Bio Bio. The sales price for the 49% stake is US$37 million and the proceeds will be received during the first half of 2014.
“We are pleased that we are selling the remaining stake in the Brazilian operations earlier than expected,” said Sven Ombudstvedt president and CEO of Norske Skog.
“For some time, we have stated that we aim to have our core business in Europe and Australasia. The sale is also part of our strategy to improve our liquidity.”
Following this transaction, Norske Skog will no longer have paper production in South America.
As part of the initial divestment of the 51% stake in Norske Skog Pisa in June 2013, a framework for selling the remaining 49% of the shares was agreed with Papeles Bio Bio SA.
These terms have now been renegotiated and include an accelerated timeline for the sale of the 49% stake. This has been possible due to a Brazilian tax refinancing program (REFIS) which was launched by the Brazilian authorities in the second half of 2013 and in which Pisa has participated.
Papeles Bio Bio SA will continue to develop the activities in Brazil together with its operations in Chile.