Norske Skog to Sell 51% Stake in Pisa Newsprint Mill for $41.3 Million
The Pisa mill, in Jaguariaíva, state of Paraná, Brazil, has the capacity to produce about 170,000 tpy of newsprint.
June 18, 2013 - Norske Skog said that it has agreed to sell 51% of the shares in Norske Skog Pisa (newsprint mill) in Brazil to Papeles Bio Bio S.A. (former Norske Skog Bio Bio), for USD 41.3 million.
“The divestment is a part of our strategy to improve Norske Skog's cash flow and financial position,” said Sven Ombudstvedt, president and CEO of Norske Skog.
“We are pleased to be able to sell part of the Brazilian operations and enter into a partnership with an industrial player that we already know from the sale of our former Chilean operations back in 2012, and that has long-term plans for the Pisa mill,” Ombudstvedt added.
The Pisa mill has a total newsprint production of approximately 170,000 tons per year, and is one of a total of four newsprint mills in South-America.
Papeles Bio Bio has agreed upon the terms of purchasing Norske Skog's remaining shares in the Brazilian operations within an expected time horizon of one to two years.
Papeles Bio Bio S.A. is part of Group BO/Pathfinder — a consortium of Chilean investors. The Group also owns BO Packaging, which is one of the leading companies in the Chilean, Brazilian and Peruvian packaging business.
Norske Skog expects to close the deal in the next few weeks.
SOURCE: Norske Skog