SANTIAGO, Chile, June 2 /PRNewswire-FirstCall/ -- MASISA S.A. (hereinafter referred to as "Masisa" or "the Company"). Masisa announced today that it signed a binding agreement for the sale of 90% of its shareholding in Forestal Argentina S.A. (hereinafter referred to as FASA) to Los Boldos S.A., a company belonging to Diversified International Timber Holdings LLC, a US forestry investment company (80%) and to GrupoNueva S.A. (hereinafter referred to as NUEVA), the majority shareholder of Masisa (10%). Masisa will be the direct owner of the remaining 10% and the three investors will develop FASA together. The deal is part of an agreement between the three investors to explore joint investments in forest assets.
As a result of the transaction, with FASA's assets valued at US$107.2 million, Masisa will book a net income of approximately US$29 million.
Enrique Cibie, Masisa's CEO, said, "We are enabling the development of new investment projects and increasing access to the fiber that Masisa will need for its future industrial projects. It is essential for us to guarantee and improve the fiber supply conditions for our current and future board plants."
Julio Moura, GrupoNueva's and Masisa's President, said, "This deal enables us to boost Masisa's industrial and forestry growth strategy and to generate value for all the shareholders."
Characteristics of the sale
The deal envisages a long-term contract for FASA to supply Masisa with wood. FASA has 38,000 hectares of pine and eucalyptus plantations and plantable landholdings in the provinces of Entre Rios and Corrientes in Argentina.
Moreover, FASA's shareholders have committed themselves to managing FASA's forest assets pursuant to the Forest Stewardship Council (FSC) standard that guarantees the responsible and sustainable management of the forests and the maintenance of reserves and protected areas. In addition, Masisa will retain the carbon credit rights equivalent to 55,000 tons of carbon dioxide from FASA's forests, which will assist it in meeting its commitment to the Chicago Climate Exchange (CCX) to reduce its carbon emissions by 6% by 2010.
Diversified International Timber Holdings LLC is a US forestry investment company that is advised by Capital Forest Ltda.
About Masisa
Masisa is a leading furniture and interior architecture board production and marketing company in Latin America. It owns forest assets in most of the region, thereby guaranteeing the raw material for its board business. Masisa's value proposal is to be a reliable brand, and a company close to all its stakeholders, anticipating market needs by means of product and service innovation, and operating responsibly towards society and the environment.
Masisa has 13 production plants in Chile, Argentina, Brazil, Venezuela and Mexico, all of which will have the ISO 14,001 and OHSAS 18,001 certification. Masisa is currently building an MDF plant in Cabrero, Chile that will have a production capacity of 340,000 m3 a year and will be the company's largest plant in Latin America, mainly for supply to the export market.
Masisa has three other divisions that operate in synergy with its core board division: forestry; solid wood; and retail.
Masisa is a publicly-traded corporation and its shares are traded on the Santiago Stock Exchange, and on the New York Stock Exchange in the form of ADRs. The company had consolidated net sales of US$886.5 million in 2006.
Forecasts and Estimates
This press release may contain forecasts, which are different statements from historical facts or current conditions, and include the management's current vision and estimates of future circumstances, industry conditions and the Company's performance. Some forecasts may be identified by the use of terms such as "may," "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," "forecasts" and other similar expressions. Statements about future market share, projected future competitive strengths, the implementation of significant operating and financial strategies, the direction of future operations, and the factors or trends affecting financial conditions, liquidity, or operating income are examples of forecasts. Such statements reflect the current management vision and are subject to various risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. These statements are made based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could lead to the current results of Masisa, and the projected Company activities, to materially differ from current expectations.
