March 13, 2018 / 11:53 AM / 2 months ago

Fibria controlling shareholders confirm bid from Paper Excellence

RIO DE JANEIRO (Reuters) - BNDESPar and Votorantim Participações SA confirmed on Tuesday that they have received an unsolicited takeover bid from Netherlands-based Paper Excellence for their controlling stake in Brazilian pulp producer Fibria Celulose SA (FIBR3.SA).

The bid from CA Investment, controlled by Paper Excellence, also includes a buyout offer to Fibria’s minority shareholders, they said in a statement.

On Monday, three people with direct knowledge of the matter told Reuters that Paper Excellence, controlled by the Wijaya family which also owns Asia Pulp & Paper Co Ltd, had made a formal bid to acquire Fibria.

The bid was structured so as to value Fibria at 40 billion reais ($12.3 billion) in a year’s time, and offered a break-up fee of 4 billion reais if the deal fails to acquire financing, the sources said.

Votorantim and BNDES Participações, as BNDESPar is formally known, said in the statement that the Paper Excellence proposal hinged “on the implementation of various future events,” adding it was not possible to predict an outcome at the moment.

    Negotiations regarding a separate takeover bid from Brazilian pulp maker Suzano Papel e Celulose SA (SUZB3.SA) were also still underway, the companies said.

    In a later securities filing, Fibria said it had received the same information from BNDESPar and Votorantim that was released publicly, and reiterated it was not directly involved in the takeover negotiations.

    Shares in Fibria were down 0.9 percent in mid-morning trading at 69.96 reais, after reports that Paper Excellence´s 40 billion reais bid refers to a price within a year. The controlling shareholders’s statement did not specify the share price Paper Excellence is offering, saying it was confidential.

    Suzano shares were up 1.3 percent.

    ($1 = 3.26 reais)

    Reporting by Rodrigo Viga Gaier; Writing by Gram Slattery; Editing by Bernadette Baum

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