Latest Photo Galleries
Brazilian Markets
17h38 Bovespa |
+1,50% | 126.526 |
16h43 Gold |
0,00% | 117 |
17h00 Dollar |
-0,93% | 5,1156 |
16h30 Euro |
+0,49% | 2,65250 |
ADVERTISING
J&F Agrees to Sell Cellulose Company 'Eldorado' for R$ 15 Billion
09/04/2017 - 11h46
Advertising
RAQUEL LANDIM
FROM SÃO PAULO
The J&F group, which controls the Batista family's assets, issued a statement saying that it had reached a deal to sell cellulose company Eldorado to a company called Paper Excellence.
The agreement, which was reached early Saturday morning (the 2nd), totalled R$ 15 billion (US$ 4.8 billion), and included a R$ 7.5 billion (US$ 2.4 billion) deficit. The deal, which will be realized in two stages, will take twelve months before it is concluded.
Paper Excellence, which has stores in Canada, belongs to the Widjaja family, which also owns Indonesian giant Asia Pulp and Paper (APP).
Folha has learned that the deal will be split in two stages. Approximately 30% to 35% of the company will be sold for R$ 5.25 billion (US$ 1.7 billion) during the first stage of the deal. The remaining 70% or so will be sold over the course of the following 12 months.
Investment funds Funcef (belonging to public bank Caixa) and Petros (belonging to public company Petrobras) own approximately 17% of Eldorado's stakes through the company FIP Florestal. If they decide to sell, Paper Excellence will take over their stake.
While Paper Excellence turned to BTG Pactual for assistance, Joesley Batista reached the agreement on his own, without turning to investment banks of any kind.
Eldorado, which was sought by Chinese company China Paper, as well as Brazilian companies Fibria and Suzano, is responsible for the production of approximately 1.7 million tons in eucalyptus cellulose per year.
Translated by THOMAS MATHEWSON
Read the article in the original language
Leonardo Benassatto/Reuters | ||
Brazil's billionaire businessman Joesley Batista talks with journalists as he leaves the Federal Police headquarters after giving testimony, in Sao Paulo |