Norske Skog has agreed to sell 51% of the shares in Norske Skog Pisa in Brazil to Papeles Bio Bio S.A., formerly Norske Skog Bio Bio.
Norske Skog's Pisa mill has a total newsprint production of approximately 170 000 tpy and is one of total 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. The agreed purchase price for the 51 % stake is $41.3m.
The buyer, Papeles Bio Bio S.A., is part of Group BO/Pathfinder. The Group also owns BO Packaging, which is one of the leading companies in the Chilean, Brazilian and Peruvian packaging business. The investor consortium is headed by the BO/Pathfinder Group, former owners of Masisa, and has interests in graphic, packaging, glass products, building products, agribusiness and real estate.