Cambium S.A., a leading forestry company which manages over 180,000 hectares (445,000 acres) of timberland in Chile and Uruguay, is planning to acquire an additional 33,000 hectares (81,500 acres) of Uruguay timberland in the Departments of Cerro Largo and Treinta y Tres.
Fundraising for the Uruguay timberland acquisition will be managed by Holland’s TMF Group which plans to offer a US$56 million forestry fund in the local stock market. The funds will be used to acquire the timberland and plant eucalyptus in Cerro Largo and Treinta y Tres.
According to El Observador’s Denis Dutra, the Montes del Este timberland fund was approved by Uruguay’s Central Bank on Wednesday, Protasi & Associates managed legal aspects of the deal, and shares will be issued through Uruguay’s Electronic Stock Exchange (BEVSA). The new timber fund will offer investors an 11% return over a 20-year term, the equivalent of two full growing cycles for Uruguay eucalyptus.
The acquisition news comes on the heels of the announcement that Uruguay’s next billion-dollar pulp mill will be built in the Department of Cerro Largo. President Mujica made reference to the new UPM plant during his presentation this week at the U.S. Chamber of Commerce in Washington. (Full Story in Spanish)
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