Norwegian paper manufacturer Norske Skog agrees to offload remaining stake in Brazilian unit for $37M
Norske Skog has signed a deal to sell its remaining 49% interest in Brazil-based Norske Skog Pisa. The said shares will be acquired by Papeles Bio Bio SA in a deal valued at $37 million, according to 4 Traders.
Papeles Bio Bio was formerly called Norske Skog Bio Bio. The firm is presently run by Group BO / Pathfinder, which is a group formed by Chilean investors. Under the terms of the said deal, the proceeds from the sale will be received during 2014's first half, the report detailed.
Sven Ombudstvedt, Norske Skog Chief Executive Officer (CEO) and President, said of the deal: "We are pleased that we are selling the remaining stake in the Brazilian operations earlier than expected. For some time, we have stated that we aim to have our core business in Europe and Australasia. The sale is also part of our strategy to improve our liquidity."
After this transaction, Norske Skog will no longer operate in South America. Meanwhile, Papeles Bio Bio will continue to develop the business activities in Brazil together with its unit in Chile, 4 Traders reported.