CMPC Agrees to Sell 60,000 Hectares of Chilean Forestland for US$365.5 Million

Chilean forestry and pulp group Empresas CMPC has agreed to sell approximately 60,000 hectares of forestland in the Maule region to Bosques San Pedro SpA, a company associated with J.P. Morgan Natural Capital, for US$365.5 million, subject to contractual adjustments.

The asset purchase agreement was signed by CMPC subsidiary Forestal Mininco, according to an announcement by the group. The properties consist primarily of productive radiata-pine plantations and account for approximately 5% of CMPC’s forestland portfolio.

The transaction remains subject to completion. Part of the purchase price is payable at closing, with the balance due as individual properties are registered in the buyer’s name. Registration is expected to proceed over the following three months.

Long-term timber supply to continue

The agreement includes a long-term timber-supply arrangement under which CMPC will purchase wood from the transferred properties. The arrangement is intended to support raw-material supply for the group’s cartonboard operation in the Maule region.

The company has not disclosed the contracted annual timber volumes, supply prices or the full duration of the agreement.

Forestal Mininco also said it would seek to maintain commitments with suppliers and customers associated with the assets during the transfer period.

Financial impact remains unquantified

CMPC expects the transaction to contribute positively to its financial results over the closing period, although the precise accounting impact has not yet been quantified.

The group described the agreement as part of its active management of its asset portfolio.

The transaction separates forestland ownership from the ongoing supply of timber to the seller’s industrial operations, allowing CMPC to retain a purchasing relationship with the properties while transferring ownership to the buyer. The financial and operational effects will depend on the completion of the transaction and the terms of the continuing supply arrangement.