By Tatiana Bautzer
SAO PAULO (Stocksak) – 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 Stocksak.
Judge J.B. Franco de Godoi revoked a prior court injunction that had prevented Paper Excellence’s completion of the transfer 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:). But J&F went to the courts and obtained an injunction preventing the transfer of 100% of Eldorado shares to Paper Excellence. Now, the appeals judge has revoked the injunction.
Claudio Cotrim (paper excellence’s CEO in Brazil), stated in a statement that he will now focus on closing the deal and operating the factory at Mato Grosso do Sul. Paper Excellence will then assess the time it takes to build a second unit. The capital expenditure for this unit is estimated at 10 billion reais ($1.94 million).
J&F said it will appeal the latest decision, arguing the arbitration it lost was tainted.
Five years have passed since the Eldorado agreement was put on hold. It was signed in September 2017 by the parties, but the closing was not completed due to disagreements.
($1 = 5.1609 reais)