Norwegian papermaker Norske Skog has entered into an agreement to sell its 49 percent stake in Norske Skog Pisa in Brazil to Papeles Bio Bio SA (formerly Norske Skog Bio Bio), which is controlled by Group BO/Pathfinder, a consortium of Chilean investors.
The Pisa mill produces around 185,000 metric tons of newsprint per year using wood chips from nearby pine plantations. Norske Skog’s remaining newsprint mill in Golsby, France, relies primarily on scrap paper.
The sales price is around $37 million and the proceeds are expected to be received during the first half of 2014.
“We are pleased that we are selling the remaining stake in the Brazilian operations earlier than expected. For some time, we have stated that we aim to have our core business in Europe and Australasia. The sale is also part of our strategy to improve our liquidity,” says Sven Ombudstvedt, president and CEO of Norske Skog.
Following this transaction, Norske Skog will no longer have paper production in South America. As part of the initial divestment in Norske Skog Pisa in June 2013, a framework for selling the remaining 49 percent of the shares was agreed to with Papeles Bio Bio SA.