Norske Skog has announced its consent to divest 51% of the shares in Norske Skog Pisa in Brazil to Papeles Bio Bio, which is controlled by a consortium of Chilean investors Group BO/Pathfinder, for $41.3m.
According to the Norwegian company, the sale is a part of the company’s strategy to improve Norske Skog’s cash flow as well as financial position.
BO/Pathfinder currently controls a packaging business in Brazil.
Papeles Bio Bio president Juan Obach said the association is expected to bolster the company’s position in the South-American market, and will allow it to serve its existing and future customers better.
The Pisa mill has a total newsprint production of about 170 000t. Papeles has agreed upon the terms of buying Norske Skog’s remaining shares in the Brazilian operations within a time horizon of one to two years.
Closing of the deal is expected to take place in June 2013.
The investor consortium is headed by the BO/Pathfinder Group, former owners of Masisa, and has interests in graphic, packaging, glass products, building products, agribusiness and real estate.