Masisa Sells 75% of Its OSB Plant in Brazil to Louisiana-Pacific
May 13 2008 - 12:58PM
PR Newswire (US)
Masisa signed the sale of 75% of the OSB plant located in the
industrial complex of Ponta Grossa, Brazil to Louisiana-Pacific.
The price agreed on for all fixed assets of the OSB plant is
US$74,000,000. SANTIAGO, Chile, May 13 /PRNewswire-FirstCall/ --
MASISA S.A. (hereinafter referred to as "Masisa" or "the Company")
hereby informs that, on May 12, 2008, Masisa and Louisiana-Pacific
South America S.A. (hereinafter referred to as "LP"), a Chilean
related company of the U.S. entity called Louisiana- Pacific
Corporation, signed the sale of 75% of the oriented strand board
(hereinafter referred to as "OSB") plant located in the industrial
complex of Ponta Grossa, Brazil, owned by Masisa's Brazilian
subsidiary, Masisa do Brasil Ltda to LP. According to Enrique
Cibie, Masisa's CEO, the decision to sell the OSB plant, which has
a production capacity of 350,000 cubic meters per annum, is based
in "our intention to focus on our core business of producing and
marketing furniture and interior architecture wood boards." The
price agreed on for all fixed assets of the OSB plant is
US$74,000,000, which is around the book value of these assets, and
this sale should not, therefore, have any significant effect on
Masisa's accounting result. This price excludes the working
capital. Of the 75% of OSB Brasil that Masisa is selling to LP,
Masisa received on this date the amount of US$ 44,400,000, which is
80% of the amount LP agreed to pay. LP shall pay Masisa the
remaining 20% once the latter physically hands over the OSB plant
to OSB Brasil and certain conditions laid down in the share
purchase and sale contract are met, which is estimated will occur
in late July 2008. Until such time, Masisa will operate the OSB
mill pursuant to an equipment leasing contract. The proceeds Masisa
obtains from this deal will mainly be allocated to reducing debt
and/or financing Masisa's investments. This transaction confirms
Masisa's commitment of focusing on the development of its core
business in Brazil, after approving, in September of 2007, the
construction of a medium density particleboard (MDP) plant in Rio
Grande do Sul. This plant is scheduled to start up in 2Q 2009 and
entails an approximate investment of US$119 million and an annual
production capacity of 750,000 cubic meters of MDP and an annual
melaminating capacity of 300,000 cubic meters. About Masisa Masisa
is a leading furniture and interior architecture board production
and marketing company in Latin America. It owns forest assets in
most of the region, thereby guaranteeing the raw material for its
board business. Masisa's value proposal is to be a reliable brand,
and a company close to all its stakeholders, anticipating market
needs by means of product and service innovation, and operating
responsibly towards society and the environment. Masisa has 13
production plants in Chile, Argentina, Brazil, Venezuela and
Mexico, all of which will have the ISO 14,001 and OHSAS 18,001
certification. Masisa is currently building an MDP plant in
Montenegro, Brazil that will have an annual production capacity of
750,000 cubic meters of MDP and an annual melaminating capacity of
300,000 cubic meters. This plant will be the company's largest
plant in Latin America, mainly for supply to the Brazilian market.
Masisa has three other divisions that operate in synergy with its
core board division: forestry, solid wood, and retail. Masisa is a
publicly traded corporation and its shares are traded on the
Santiago Stock Exchange. The Company had total sales of
approximately US$ 966 million in 2007. 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. For further
information, please contact: Investor Relations (56 2) 350 6038
Internet: http://www.masisa.com/ DATASOURCE: Masisa S.A. CONTACT:
Investor Relations, Masisa, +011-562-350-6038, Web site:
http://www.masisa.com/
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