Empresas CMPC SA (“CMPC”) concluded the preferential rights period of its capital increase, with existing shareholders subscribing to 95.27% of the total capital increase, as the company said in the press release received by Lesprom Network.
The preferential rights period, which began on May 9, 2013 and ended on June 8, 2013, consisted in the offering of up to 155,602,948 shares priced at CLP1480 ($2.9), for all shareholders of record as of May 3, 2013. During this period, existing shareholders were able to subscribe to the capital increase in proportion to their holdings.
The Matte Group, which holds 55% of CMPC’s shares, subscribed in proportion to their holding, as did the Chilean pension funds, which together hold 11% of CMPC’s shares. Proceeds from the capital raise will be used to finance the expansion of the Guaiba pulp project, as well as general corporate purposes. Banchile-Citi and Bice Chileconsult acted as Financial Advisors in this process.
CMPC’s Board of Directors will decide the method and the timing for the offering of the non-subscribed portion of the shares.
The capital raise is part of the previously announced financing package for CMPC’s expansion of the Guaíba pulp facility in the state of Rio Grande do Sul, Brazil. Previously, the Company successfully placed a $500 million international bond at a rate of 4.469%, and obtained a credit facility of BRL$2,150 million ($1.1 billion) with Brazilian development bank BNDES. Forthcoming steps will include the sale of non-core assets, including the sale of the Company’s 7.7% stake in BiceCorp SA in the second half of 2013, and, if it is deemed necessary, a potential second capital increase of up to $250 million.
The expansion of the Guaiba mill will increase CMPC’s pulp production capacity by approximately 1.3 million tons to 4.1 million tons per year, helping the Company double its share of the global pulp market. The startup for the project is planned for 2Q 2015.
Total investment in the project will be approximately $2.1 billion. To date, the company has signed contracts for approximately 75% of the investment. The main suppliers are Metso, Chemetics, Demuth, Veolia, Siemens and Weg, which will supply equipment and services for the fiber line, dryer machines, recovery boiler, recausticizing, wood yard, water treatment facilities, turbo generators, power systems and the integrated chemical plant.
