In a Material Fact sent by Empresas Copec today to CMF (Chile’s Financial Market Commission), the company informed that, upon the fulfillment of the agreed-upon suspensive conditions, Arauco and its subsidiary Inversiones Arauco Internacional Limitada have transferred all the shares and social rights they directly held in Arauco Florestal Arapotí S.A. and Arauco Forest Brasil S.A., and indirectly in Empreendimentos Florestais Santa Cruz Ltda. and Florestal Vale do Corisco S.A., which own forest plantations mainly in the state of Paraná, Brazil. This transaction was subject to local approvals and had been reported last December.

The sale price, which amounted to US$1.168 billion, has been paid as of this date and is subject to customary price adjustments after the closing of the transaction. The after-tax amount to be received by Arauco is approximately US$967 million, generating an after-tax gain of approximately US$174 million, to be recognized in this year. This amount differs from the amount reported in the Material Fact of December 20, 2009, as a result of the early recognition of deferred taxes at year-end 2023, as required by IFRS accounting standards.

To see the Material Fact, click here.