7 Nov 2016 07:00
7 November 2016
Cambium Global Timberland Limited
(the "Company" or "Cambium")
Timber Disposal
Cambium Global Timberland Limited has entered into a wood supply agreement with SUZANO PAPEL E CELULOSE S.A, a publicly owned Brazilian pulp and paper company ("Suzano"), to sell to Suzano substantially all of the standing timber on Cambium's 3R property in Tocantins state, Brazil.
The Cambium board is delighted with the commercial terms of the agreement, which is expected to generate an income to Cambium approximately equalling the current book value of the trees (before legal and financial advisory costs related to the transaction). The final price to be paid by Suzano will be determined pursuant to a pre- harvest inventory to be commissioned in early 2017. Broadly, a deposit is payable to Cambium within 15 days of the agreement which is expected to amount to approximately 20% of the total purchase price (the total price to be finally quantified after the pre-harvest inventory), with approximately 60% due after the pre-harvest inventory in the first half of 2017 and the balance before the end of 2017 once all the wood has been removed.
This sale is part of the planned orderly realisation of Cambium's assets. The board continues its efforts to realise remaining assets and looks forward to making further announcements at appropriate times.
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Broker and Nominated Adviser
Panmure Gordon
Paul Fincham/Jonathan Becher
0207 886 2500
Sub-Administrator and Delegate Company Secretary
Praxis Fund Services Limited
Janine Lewis/Matt Falla
01481 737600