The China Paper Holdings group has submitted a proposal of 16 billion reais (US$5.07 billion) to buy the entire capital stock of Brazilian company Eldorado, J&F’s pulp producer, the holding company of brothers Joesley and Wesley Baptista, the Folha de São Paulo newspaper reported on Wednesday.
The offer presented by the Chinese group surpasses one previously presented by the Asia Pulp and Paper Group (APP) of Indonesia, which had offered just over 15 billion reais.
The newspaper also wrote that the Baptista brothers began receiving offers after Chile’s Copec, the owner of Arauco, a business unit in Brazil that had offered 14 billion reais for Eldorado, broke the exclusivity contract for the deal, when it was not completed within the time limit set.
Folha de São Paulo said that the managers of Brazilian company Fibria Celulose, which produces paper pulp and paper, said that the value of the proposals should decrease when the interested groups carry out a risk assessment of the business, given that Eldorado has legal and accounting litigation under way. (macauhub)