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Arauco Finalizes Multi-Million Dollar Sale in Brazil, Exceeding Expectations

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• The Chilean company closes a successful deal with Klabin S.A., surpassing projected sales figures and strengthening its position in the forestry market.

In a strategic move that surprised the markets, Celulosa Arauco y Constitución, part of the Empresas Copec conglomerate, finalized the sale of its forestry assets in Brazil to Klabin S.A., the largest paper producer and exporter in the country.

The transaction, which includes approximately 85 thousand hectares of pine and eucalyptus plantations, closed at $1.168 billion, exceeding initial estimates and yielding a net profit of $174 million for the Chilean company.

The operation, announced last December, involves the full transfer of shares Arauco held in various forestry companies in the state of Paraná, Brazil. The sale price, initially estimated at $1.160 billion with a $130 million profit, saw a significant increase due to the application of IFRS accounting standards, allowing the early recognition of deferred taxes.

This agreement not only represents a financial achievement for Arauco but also reflects the current dynamics of the forestry industry in Latin America. While Arauco advances in consolidating its operations and generating capital, it continues investing in Chile, as demonstrated by the recent approval of a $100 million investment in its Trupán Cholguán Complex. This initiative is expected to create 200 new jobs and emphasizes the importance of local hiring.

With this sale, Arauco not only capitalizes on its overseas investments but also positions itself for further growth and expansion in the global market. The company reaffirms its commitment to sustainable development and innovation in the forestry industry, marking a clear contrast to the challenges expressed by other sector players, such as CMPC, regarding project execution in Chile.