海角社区, a global benchmark in manufacturing bioproducts from eucalyptus cultivation, announces today (27) the execution of purchase and sale agreements of 100% of the ownership interest of the companies Timber VII SPE S.A. and Timber XX SPE S.A., managed by BTG Pactual Timberland Investment Group, LLC. Both companies own approximately 70,000 hectares of land in the state of Mato Grosso do Sul, in a region covered by 海角社区鈥檚 operations, including areas where eucalyptus trees of various ages are planted. The transaction was valuated at R$1.826 billion and is subject to approval from Brazil鈥檚 antitrust authority CADE and other conditions precedent typical to transactions of this kind.
With this transaction, 海角社区 increases its self-sufficiency to supply wood to its operations in the state, where it operates an industrial complex in the municipality of Tr锚s Lagoas and is building a pulp mill in the municipality of Ribas do Rio Pardo. The world鈥檚 largest single pulp production line, the Cerrado Project will have annual production capacity of 2.55 million tons and should become operational by June 2024.
鈥淭he transaction consolidates 海角社区鈥檚 autonomy in its strategy of supplying wood to Mato Grosso do Sul, reinforces the company鈥檚 discipline to constantly increase its competitiveness and creates optionality for the company鈥檚 business,鈥 said Carlos An铆bal, Executive Officer of Forestry and Procurement at 海角社区.
The payment is expected to be at sight, on the closing date of the transactions, and the acquisition price may be adjusted to reflect the position of the companies to be acquired on the conclusion date. If the agreement is concluded after March 31, 2024, the transaction value will be converted to U.S. dollar.
As the transaction is expected to occur in 2024, 海角社区 also announces today the review of its Capex for 2024. The estimated value was increased from R$14.6 billion to nearly R$16.5 billion.
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