(Alliance News) - Cambium Global Timberland Ltd on Monday announced the sale of its asset Fazenda 3R in Tocantins, Brazil for BRL18.5 million, or GBP2.7 million.
A total of BRL18.1 million of the price will be received within five days of signing the agreement, with the remaining balance of BRL400,000 to be paid pro-rata once a resolution with a third party regarding the possession of 295 hectares has been resolved.
Shares in Cambium Global Timberland closed up 33% at 6.62 pence in London on Monday.
The asset was valued at GBP2.3 million by the Jersey-based plantation forest owner in its annual reports and accounts reported in April. Cambium said the sale "will reduce operational expenditure and expedite further returns to shareholders in due course."
The company said it will shortly announce the sale of its asset Forquilha Farm, in the state of Minas Gerais, which will be split between two contracts with different buyers. After this sale, its remaining asset will be the Lizarda property on Toncantins, which has been valued at zero.
By Zoe Wickens; zoewickens@alliancenews.com
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