This agreement envisages the creation of a 50/50 joint-venture involving the existing European and South African wood based panels and related operations of Sonae Indústria, namely all its production facilities of wood based panels, chemicals and paper impregnation.
The planned partnership will be consummated by Arauco subscribing an amount of Euro 137.5 million to a capital increase of Sonae Indústria’s subsidiary Tableros de Fibras, S.A., that will be renamed “Sonae Arauco, S.A.”.
Sonae Indústria and Arauco will also enter into a Shareholders’ agreement that will establish the management rules and principles of this partnership. This partnership excludes Sonae Indústria’s operations in North America and the laminates and components business, which will continue to be fully owned by Sonae Indústria.
The completion of this transaction is subject to certain conditions, namely the clearance of the competent Competition Authorities; the execution of certain internal transactions to achieve the required business perimeter; and certain amendments to the existing debt facilities of Sonae Indústria group. The parties will work together with the aim of fulfilling these conditions in the first half of 2016.
Arauco is a forestry company that produces and manages renewable forest resources. Arauco woodpulp; panels, including plywood and fiberboard panels; and wood products consisting of sawn timber (green, kiln-dried lumber and flitches) and remanufactured wood products.
With a total of 17 plants located in 5 countries on 3 continents, Sonae Indústria’s main activities relate to manufacturing and selling of wood-based panels.
