Fibria Agrees to Sell 100,000 Hectares of Forestlands in Brazil to CMPC
Sept. 10, 2012 - Fibria said that it has received and accepted a binding offer from CMPC Celulose Riograndense S.A. for the purchase of forestry assets and lands located in the State of Rio Grande do Sul ("Losango"), Brazil consisting of approximately 100,000 hectares of owned areas and nearly 39,000 hectares of forestland of eucalyptus in these owned areas and in third parties leased areas, for a total amount of R$ 615,000,000.00 (six hundred and fifteen million reais) to be paid, in currency, in three different installments:
- R$ 488,000,000.00 (four hundred and eighty eight million reais) by the approval of the transaction by the Administrative Council for Economic Defense ("CADE");
- R$ 122,000,000.00 (one hundred and twenty two million reais) to be deposited, by the time of CADE´s approval, on an escrow account to be opened before a leading financial institution, which will be released upon other applicable governmental approvals and other condition precedent;
- R$ 5,000,000.00 (five million reais) by the effective assignment of the existing agreements related to the assets and the applicable governmental approvals.
The total amount of the price may be adjusted after the completion of the confirmatory due diligence, Fibria said.
Fibria also announced that the deal with CMPC does not include the partnership program agreements developed in Losango areas, which will be maintained and honored by Fibria. Fibria noted that it analyzes potential opportunities for the use of wood volumes arising from these partnership program agreements.
SOURCE: Fibria Celulose S.A.