Completion of sale of Eldorado coming up in deadlock

Discussions about buying the 100% control of Eldorado, the Baptist family, by the Canadian group Paper Excellence should not have an outcome in the next few days, found the State. The transaction, which should be completed next Monday, crashed because buyers and sellers disagrees on how the guarantees the debts of a holding of the JBS owners must be released. The process, which runs under wraps, can be discussed in arbitration Chamber. There is no agreement, forecast for now, according to sources familiar with the matter. In business announced on day 2 of September 2017, the PE has signed agreement to purchase from Eldorado, by R $15 billion, including debt. The operation was done in stages. The PE R $3.8 billion disbursed by 49.4% stake in the company and has pledged to release in one year warranties given by J&F, the holding company of the Baptist family. The EP, which has among its shareholders the family Indonesia Wadjaja, owner of Asia Pulp and Paper (APP), would have been willing to pay the money directly to the Eldorado. But the understanding would be of J&F and that, under the agreement, the hit would release along the banks of the guarantees of the holding, of around $6.8 billion, in addition to R R $2.3 billion in JBS shares. The EP would have argued that, in recent months, controllers would not be contributing to the completion of the deal and would be putting obstacles to the operation. More term. The Baptist family would have given to a period of 30 days to resolve the matter, without review of the values of the transaction, but the proposal would have been refuted. Another option on the table would extend the operation for six months, since the values of the business were reviewed, since international prices of cellulose and the dollar has appreciated in recent months. Sought, the J&F did not comment. The Paper Excellence reaffirmed, in a note, which comes in compliance with the provisions laid down in the agreement and reiterates that it is ready to perform the closing, having available, since mid-July, the resources necessary for the completion of the transaction (R $10.8 billion).