CMPC, through its subsidiary CMPC Celulose Riograndense Ltda., entered into a purchase agreement with Florestas do Sul Agroflorestal Ltda. in relation to the equity interest issued by a newly incorporated subsidiary of Florestas do Sul Agroflorestal Ltda. that will own all the timber assets currently owned by Florestas do Sul Agroflorestal Ltda.
On the date of the closing of the transaction, the new company will own approximately 5.3 million cubic meters of eucalyptus planted across the state of Rio Grande do Sul, Brazil, which will be used to supply CMPC Riograndense’s pulp mill in the city of Guaíba, RS, Brazil.
The purchase price established for the transaction is equivalent to USD 63 million, subject to certain adjustments based on the variation of the volume of the timber assets.
The closing of the transaction is subject to the completion of a series of conditions precedent, common in this type if operations, including the approval by the Brazilian antitrust authority Conselho Administrativo de Defesa Economica, in compliance with Brazilian Law.