Suzano Weighs Selling Land, Forestry to Cut Debt, CFO Says
Suzano Papel & Celulose SA (SUZB5), Latin America’s most indebted pulpmaker, is considering the sale of farmland and forestry assets to reduce leverage, Chief Financial Officer Alberto Monteiro said.
“We are studying a few alternatives, and selling land or forestry is one of them,” Monteiro, 45, said today in a telephone interview from Sao Paulo. “We should make a decision on whether to put them on sale soon.” He declined to disclose how much the company may raise with the sales.
Suzano’s debt jumped 56 percent in the past two years after it bought a stake in a paper and pulp producer and expanded some plants to double output by 2016. Last year Suzano raised 1.5 billion reais ($739 million) in a share sale to cut debt, and in December it agreed to sell a 17.9 percent stake in a Brazilian utility for 320 million reais.
Shares rose 1.3 percent to 7.23 reais at 4:26 p.m. in Sao Paulo. The Bovespa stock index fell 0.8 percent.
To contact the reporter on this story: Lucia Kassai in Sao Paulo at firstname.lastname@example.org
To contact the editor responsible for this story: James Attwood at email@example.com