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Despite the efforts and adjustments in recent times, the subsidiary suspended operations due to several reasons related ...
Business / Published May 29, 2020
ARAUCO agrees US$700 million capital increase
At the General Extraordinary Shareholders’ Meeting, held on May 19, 2020, it was agreed, by the unanimity of the issued shares, to increase the share capital by approximately US$ 700 million. The move is intended to help finance the projects developed by the Company, especially the Modernization and Extension of the Arauco Mill (MAPA).
Additionally, the transaction seeks to strengthen the Company’s financial position, which has been affected by the capital needs of the various projects it carries out and has carried out; by the impact of US-China trade dispute on the market, and by the dwindling global demand for products amid the Covid-19 pandemic.
Of the total capital increase agreed upon, it is estimated that US$ 250 million will be required to be paid in 2020. The balance will be paid in 2021, depending on the resources required during that year.