SAO PAULO, Oct. 4, 2001 (Press release) Votorantim Celulose e Papel (VCP) announces that it has entered into an agreement to acquire, through one of its affiliates, a 28% voting interest (12.3% total interest) in Aracruz Celulose, the Brazilian eucalyptus pulp company. The stake is being acquired from Mondi Brazil, a subsidiary of Anglo American for a cash consideration of $370 million.
Raul Calfat, CEO of VCP, said, "This transaction represents an important step for VCP in strengthening our position in the global pulp and paper markets. This also enhances our status as one of the lowest cost producers with outstanding services to our customers. We are very pleased with this opportunity which we believe will create substantial value for our shareholders."
Andrew Thompson, chairman of Mondi Brazil, said, "We evaluated the options for our investment in Aracruz and concluded that it was in the interests of our shareholders to sell our stake on these terms. We have valued being party to the development of Aracruz during our time as voting shareholders with board representation. We have been particularly impressed by the vision and leadership of Erling Lorentzen as founder and chairman. We are confident that VCP will be a supportive new voting shareholder and we wish both them and Aracruz success in the future."