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Arauco sells Brazilian forestry companies with assets in the state of Paraná

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Celulosa Arauco y Constitución S.A. (Arauco) reported as essential information that yesterday the company signed a share purchase agreement ("SPA") under which it has agreed, together with its subsidiary Inversiones Arauco Internacional Limitada (IAIL), to sell to a company specially incorporated for this purpose and designated by the Brazilian company Klabin S.A. all the shares and social rights they directly hold in Arauco Florestal Arapotí S.A. and Arauco Forest Brasil S.A., and indirectly in Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A. (Brazilian forestry companies), which own assets primarily in the state of Paraná, Brazil.

The agreed sale corresponds to all shares and rights in the Brazilian forestry companies, except for Florestal Vale do Corisco S.A., in which the sellers indirectly own 49% of the shares of the latter.

The eucalyptus and pine plantations involved in the transaction cover approximately 85,000 productive hectares. Additionally, Arauco clarified that the sale of shares and social rights does not extend to industrial assets related to panel plants in Brazil, nor to other forestry assets located mainly in the state of Mato Grosso do Sul, Brazil, which are linked to an industrial project to build a future pulp mill called the "Sucuriú Project."

The total agreed purchase price amounts to US$1,160,000, payable at the closing date of the transaction, subject to customary adjustments for this type of transaction, depending on factors such as working capital, net debt, and the volume of standing pine and eucalyptus timber of the Brazilian Forestry Companies at closing.

Closing is subject to the fulfillment of customary suspensive conditions for this type of operation, including authorization from Brazilian antitrust authorities (Administrative Council for Economic Defense or CADE).

"It has been preliminarily estimated that, if the transaction closes, it will have a positive impact on 2024 results of approximately US$130 million after taxes, due to the sale of shares and social rights in the Brazilian Forestry Companies," Arauco stated.

Source:www.diarioestrategia.cl