Papeles Bio Bio S.A. will acquire Norske Skog’s 51 percent stake in Brazilian newsprint mill.
Norske Skog, headquartered in Oslo, Norway, has agreed to sell its 51 percent stake in its Norske Skog Pisa newsprint mill in Brazil to Papeles Bio Bio S.A., which is controlled by Group BO/Pathfinder, a consortium of Chilean investors. The deal is expected to be complete by the end of June 2013. The purchase price is $41.3 million.
The Pisa mill produces about 170,000 tons of newsprint per year and it is one of four newsprint mills in South America.
The BO/Pathfinder Group also owns BO Packaging, which has a significant position in Chilean, Brazilian and Peruvian packaging businesses.
Norske Skog says the sale of its Brazilian newsprint mill is part of the company’s strategy to improve its cash flow and financial position.
“We are extremely happy to have Norske Skog as our partner in Brazil, a country where BO/Pathfinder currently controls a packaging business. This association will surely strengthen our position in the South-American market and will allow us to give better service to our current and future customers,” says Juan Obach, president of Papeles Bio Bio S.A.