Norske Skog to divest its Bio Bio, Chile, 125,000 tonnes/year newsprint mill to Chilean investors Group BO for US$56M, group to continue newsprint production; transaction to close in Q2
March 26, 2012
– Norske Skog has agreed to sell Norske Skog Bio Bio in Chile to Group BO, a consortium of Chilean investors, for USD 56 million. Group BO plans to continue producing newsprint at the mill.
- The divestment is a part of our strategy to improve Norske Skog's cash flow and financial position. We are very pleased to be able to sell the Chilean operations to an industrial player with long-term plans for the mill, says Sven Ombudstvedt, president and CEO of Norske Skog.
The Bio Bio mill has a total newsprint production of approximately 125 000 tons, and is one of total four newsprint mills in South America.
The investors participating in Group BO are already partners in BO Packaging, which is one of the leading companies in the Chilean and Peruvian packaging business. The investor consortium is headed by the Pathfinder Group, former owners of Masisa, and has interests in packaging, glass products, building products, agribusiness and real estate.
Closing of the transaction is expected to take place in second quarter.
DNB Markets acted as Norske Skog's financial adviser.