|Masisa S.A. Reports Anticipate Income From Sale of 90% of Forestal Argentina S.A.
|Santiago, Chile, 03 July 2007 -- /PRNewswire/ -- Masisa S.A. (NYSE:MYS) announced on 01 June 2007, the sale of 90% of its shareholding in Forestal Argetina 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., 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 initially informed that it will book a net income of approximately USD 29 million without accounting for the effects of the realization of reserves related to FASA that have been recognized to date by Masisa.
The effect of the realization of reserves related to FASA that have been recognized to date by Masisa amounts to approximately USD 11 million. Therefore, the net income for Masisa resulting from the above mentioned transaction will total approximately USD 40 million under Chilean GAAP.
As previously reported, the final closing of this purchase and sale agreement is subject to normal commercial conditions for these kind of deals, to due diligence, and to the authorization from Argentina's National Border Zone Commission.
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 cubic meters 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.