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J&F Investimentos to sell Eldorado Brasil Celulose to Paper Excellence

04 Sep 2017 − 

Paper Excellence has reportedly agreed to pay BRL15bn for Eldorado Brasil Celulose.

Pulp producer Eldorado Brasil Celulose informed its shareholders in a market announcement on 2 September that the company's major shareholder J&F Investmentos has agreed to sell its entire stake in the company to CA Investment S.A., a subsidiary of Paper Excellence. According to Eldorado, the purchase price for the company amounts to BRL15bn (€4bn), adjusted for working capital and net financial debt at completion.

J&F Investmentos holds a 81% stake in Eldorado Brasil Celulose, according to information on Eldorado's website. The remaining 19% are in the hands of the pension funds Petros and Funcef, and the private equity fund FIP Olimpia.

Eldorado runs one pulp mill in Três Lagoas with an installed production capacity of 1.7 million t of bleached eucalyptus kraft (BEK) pulp. The company is set to increase its production capacity to over 4 million t by installing a new BEK pulp line. The start-up date of the new 2.5 million t pulp production line has been postponed from the first half of 2018 to 2020.

Paper Excellence runs pulp mills in Canada and France offering a total production capacity of 2.3 million t. The company is affiliated to Indonesia's industry conglomerate the Sinar Mas Group and its pulp and paper subsidiary Asia Pulp and Paper (APP).

Find the entire article and any associated background information in EUWID Pulp and Paper issue 36/2017.

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