October 13, 2017 / 3:29 PM / 7 days ago

Brazil pension fund Petros to exit pulpmaker Eldorado

SAO PAULO, Oct 13 (Reuters) - Petros Fundacao, the pension fund for employees of state-controlled Petroleo Brasileiro SA , has agreed to sell an 8.53 percent stake it holds in pulpmaker Eldorado Brasil SA, after Paper Excellence BV exercised an option to buy the stake.

Petros had the right to sell its stake at similar terms as holding company J&F Investimentos SA, which had a controlling stake in Eldorado. The pension fund’s stake in Eldorado was valued at 388 million reais ($123 million), Petros said in a statement on Friday.

In September, Brazilian holding company J&F Investimentos SA accepted a proposal from Paper Excellence, controlled by the owners of Indonesia’s Asia Pulp and Paper Co Ltd, to buy pulpmaker Eldorado Brasil Celulose SA for 15 billion reais, including debt.

Last week, Funcef, the pension fund for employees at Brazilian state bank Caixa Economica Federal, agreed to exercise tag-along rights on an identically sized stake in Eldorado that it held through FIP Florestal. ($1 = 3.16 reais) (Reporting by Gram Slattery; Editing by Chris Reese)

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