Portucel Group negotiates sale of 20 pct of project in Mozambique

24 October 2014

Portuguese group pulp and paper group Portucel Soporcel is negotiating with the International Finance Corporation (IFC), the World Bank group, to sell a 20 percent stake in a project in Mozambique, the group’s chairman said in Lisbon.

Diogo da Silveira noted that the partnership with IFC was a year old and added it could be enhanced with the World Bank subsidiary buying a 20 percent stake in Portucel Soporcel’s Mozambican subsidiary, according to the Portuguese financial daily Diário Económico.

Presenting the group’s results for the third quarter Diogo da Silveira said that negotiations with the IFC were not exclusive, and admitted the possibility of “other partners in the future.”

Four years ago, when it launched the project with an investment of US$2.3 billion, the chief executive of Portucel Mozambique, Pedro Moura, noted the group’s intention of selling up to 30 percent to Mozambican investors.

Silveira said “the aim is to strengthen the commitment [of Portucel] in an integrated forestry production, pulp and energy projects that is underway and is now intensifying its forestry work and strengthening the operational base in Mozambique.”

In the first nine months of the year, the group posted turnover of 1.138 billion euros, 0.1 percent more than in the same period last year, and profits fell 11.1 percent to 133.1 million euros. (macauhub/MZ/PT)