CMPC approves US$250M capital increase to help fund US$2.1M Guaíba II pulp line in Brazil, plans to issue 125 million new shares
April 22, 2014
– - Shareholders approve US$250 million capital increase
- Capital increase to help fund the US$2.1 billion Guaíba II pulp line in Brazil
Empresas CMPC, a leading Latin American forestry products and personal care manufacturer, announced today that a US$250 million capital increase was approved at the Company’s 54th Extraordinary Shareholders’ Meeting.
Shareholders approved a plan to issue a total of 125 million new shares. The Board of Directors has been authorized to issue the new shares and set the price for the preferential subscription period which should start within 180 days after the Extraordinary Shareholders’ Meeting.
“In today’s meeting, shareholders gave a further vote of confidence in CMPC’s investment plan and financing strategy,” said Mr. Gonzalo García, General Secretary of CMPC. “CMPC’s management and its shareholders, including the Matte Family, are committed to growing the Company while limiting leverage. This capital increase will help us achieve both goals.”
Proceeds from the capital raise will go towards funding the new US$2.1 billion pulp line at the Guaíba facility in Brazil. The expansion of the Guaíba facility will utilize the most advanced technologies to boost pulp production by 1.3 million tons per year. The project is on schedule to begin operations in the second quarter of 2015.
CMPC is funding the investment with a mix of cash, debt, equity and the sale of non-core assets.
Finally, it is important to mention that Empresas CMPC’s Ordinary Shareholders’ Meeting held today elected directors for a period of three years, among other measures. The Board was composed of the same members elected in 2011: Eliodoro Matte L. as Chairman, Martin Costabal Ll., Erwin Hahn H., Arturo Mackenna I., Jorge Marín C., Bernardo Matte L. and Jorge Gabriel Larraín B.
Empresas CMPC produces pulp, paper, tissue, paper products and other forestry products throughout Latin America. The Company aims to deliver world-class products, from forestry to finished products, to its important global customer base. Its high quality timber and production facilities are strategically located in countries including Chile, Brazil, Argentina, Mexico, Colombia, Peru, Uruguay and Ecuador making the Company truly regional with a competitive cost structure. CMPC sells more than 25 different product lines to over 31,000 clients in more than 45 countries, always seeking long-term relationships.