Norske Skog divests operations in Brazil
Norske Skog said that it has agreed to sell 51 percent of the shares in Norske Skog Pisa in Brazil, mainly the newsprint mill, to Papeles Bio Bio S.A. for USD 41,3 million.
The Pisa mill has a total newsprint production of approximately 170 000 tons per year, and is one of a total of 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.
Papeles Bio Bio S.A. is part of Group BO/Pathfinder — a consortium of Chilean investors. The Group also owns BO Packaging, which is one of the leading companies in the Chilean, Brazilian and Peruvian packaging business.
Norske Skog expects to close the deal in the next few weeks.