(Alliance News) - Cambium Global Timberland Ltd on Thursday said it agreed to sell its tree farm at Agua Santa, in Minas Gerais, Brazil.
The plantation forest owner said the agreement will result in a total payments of BRL30.0 million, about GBP6.2 million, paid over a 24 month period. The value of assets agreed for disposal stood at GBP4.9 million as at April 30.
The company noted that it continues to hold its interests in Tocantins, Brazil and two other properties in Minas Gerais, Brazil.
The contract is conditional on the completion of due diligence by an undisclosed buyer and requires a BRL3.0 million down payment on the completion of due diligence, followed by 24 monthly repayments of BRL1.1 million, Cambium noted.
The sale is in line with the company's policy, it said, to realise its assets and will reduce operational expenditure and expedite further returns to shareholders in due course.
Cambium will publish its annual results on July 25, it said.
The stock was trading 8.1% higher in London at 12.70 pence a share on Thursday.