The takeover of the Brazilian pulp manufacturer Eldorado Brasil by Paper Excellence threatens to fail.
In a securities filing on Tuesday, BEK pulp manufacturer Eldorado Brasil Celulose announced that its parent company J&F Investimentos had exercised its right to terminate the previously concluded agreement with Paper Excellence and CA Investment (Brazil) S.A., a company of the Paper Excellence Group, for the sale of its 50.59% shareholding in Eldorado. Eldorado Brasil said in the filing that it had been informed by J&F that a deadline to conclude the deal with Paper Excellence and CA Investment had expired on 3 September after a 12-months period, which triggered J&F to cancel the deal.
According to Eldorado, CA Investment, which holds 49,40% of Eldorado's shares, has filed an arbitration claim against the company and its parent J&F.
Paper Excellence said that it did not accept J&F's decision to cancel the purchase agreement for the control of Eldorado Brasil and reiterated that it would continue appropriate measures to ensure the preservation of its rights.
This is only an excerpt of our report on Eldorado Brasil and Paper Excellence. The full article will be published in EUWID Pulp and Paper issue no 37/2018 and will be available to our e-paper and print subscribers as of 12 September.