50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Brazilian court allows Paper Excellence to conclude acquisition of Eldorado

Published 10/22/2022, 12:16 PM
Updated 10/22/2022, 12:20 PM
© Reuters.
JBSAY
-

By Tatiana Bautzer

SAO PAULO (Reuters) - Pulp maker Paper Excellence has obtained a court decision allowing completion of its deal to acquire Brazilian company Eldorado Brasil Celulose from J&F Investimentos, according to documents seen by Reuters.

Judge J.B. Franco de Godoi, at an appeals court, voided a previous court injunction that prevented Paper Excellence from concluding the transfer of ownership of Brazilian pulp maker Eldorado.

Paper Excellence won an arbitration against Eldorado's current controlling shareholder, J&F Investimentos, which also controls meatpacker JBS SA (OTC:JBSAY). But J&F went to the courts and obtained an injunction preventing the transfer of 100% of Eldorado shares to Paper Excellence. Now the judge in the appeal has voided the injunction.

Paper Excellence's CEO in Brazil, Claudio Cotrim, said in a statement he will focus now on concluding the deal and operating the factory in the Brazilian state of Mato Grosso do Sul. Paper Excellence will then consider how soon it can build a second unit, with an estimated capital expenditure of 10 billion reais ($1.94 billion).

J&F said it will appeal the latest decision, arguing the arbitration it lost was tainted.

The Eldorado deal has been on hold for five years. It was signed in September 2017 but never concluded due to the parties' disagreement over the closing.

($1 = 5.1609 reais)

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.