Norske Skog Sells Forest In Brazil
Oxenøen, Norway, May 3, 2011 - Norske Skog sells forest areas in Brazil as part of the work to improve the company's financial position
Norske Skog has entered into an agreement with CMNPAR Four Participacoes S.A., a Brazilian company advised by Global Forest Partners LP, a US based, SEC registered investment advisor, for the sale of around 21 500 hectares of forest in Brazil, of which 10 500 hectares are productive forest.
- We are satisfied with the sale of the forest property in Brazil, which did not generate cash and was not a core asset. This will improve our financial position by reducing our net debt, says Sven Ombudstvedt, CEO and President of Norske Skog.
The sales price for the shares is USD 63.5 million (approximately NOK 335 million), which will be paid within few days. The sale has resulted in a gain of around NOK 43 million, which will be recognized in the first quarter of 2011 and included in "Other gains and losses".