VCP Readies Share Sale

Brazil’s Votorantim Celulose e Papel has approved the sale of up to BRL4.25bn in new shares to raise captial, it says. The pulp and paper producer plans to sell up to 62.1m ordinary and 161.8m preferred shares, at BRL19.00 each. Existing shareholders will have a 30-day period to subscribe, which may be extended to 60 days, depending on the finalization of VCP’s purchase of 28% of Aracruz Celulose for BRL2.7bn. VCP also says it has approved the price of BRL14.56 for Aracruz ordinary shares transferred to VCP under the sale agreement. VCP preferred shares closed at BRL13.80 Monday, and Aracruz ordinary shares at BRL12.50. The acquisition of the 28% stake in Aracruz from the Lorentzen family, agreed last month after a 5-month delay, gives VCP a controlling interest in its competitor. Development bank BNDES has agreed to invest up to BRL2.4bn in VCP through its BNDESPar investment unit’s purchase of up to BRL1.8bn in preferred shares and BRL580m in convertible debentures.