Finland Times

 

File picture of Stora Enso's headquarters in Helsinki. File Photo – Lehtikuva.

Finnish Wood products and packaging giant Stora Enso on Thursday announced that it will di-vest its ownership in the Arapoti Mill in Brazil to Papeles Bio Bio. 

 

The company in a press release announced that it had signed an agreement to divest its entire 80 percent share in the Arapoti magazine paper mill in Paraná, Brazil, to Papeles Bio Bio, a Chilean paper producer.

 

According to the company, the consideration for the divestment of the shares is approximately euro 21 million, subject to customary closing day adjustments. The loss on disposal amounts to approximately euro 27 million and will be recorded as a non-recurring item in Stora Enso’s fourth quarter 2015 results. The transaction will reduce Stora Enso’s net debt by approximately euro 18 million.

 

The transaction is subject to regulatory approvals and is expected to be completed during the first quarter of 2016.

 

Based on 2015 annual figures, the transaction decreases Stora Enso’s sales by approximately euro 100 million.

 

“Arapoti Mill is in good technical shape and has a loyal customer base. I believe that it will ben-efit from being part of a Chilean company with a newsprint production unit close to the mill,” said Kati ter Horst, EVP Paper division of Stora Enso in the release.