|Masisa S.A. Agrees to Sell 90% of Forestal Argentina S.A.
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|Santigo, Chile, 02 June 2007 -- /PRNewswire/ -- Masisa S.A. (NYSE:MYS) announced today that it signed a binding agreement for the sale of 90% of its shareholding in Forestal Argentina S.A. (FASA) to Los Boldos S.A., a company belonging to Diversified International Timber Holdings LLC, a U.S. forestry investment company (80%) and to GrupoNueva S.A. (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 USD 107.2 million, Masisa will book a net income of approximately USD 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 U.S. forestry investment company that is advised by Capital Forest Ltda.
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 14001 and OHSAS 18001 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. Its shares are traded on the Santiago Stock Exchange, and on the New York Stock Exchange (NYSE:MYS) in the form of ADRs. The company had consolidated net sales of USD 886.5 million in 2006.
Source: MASISA S.A.
Web site: http://www.masisa.com/