04/28/2009 11h54

Agra and Veremonte take control of Klabin Segall

Valor Econômico - 04/28/2009

Spanish mega-investor Enrique Bañuelos takes one more step towards consolidating his participation in the Brazilian real estate market. After Abyara, his company, Veremonte, will be the new holding company of Klabin Segall. The operation reiterates Veramonte's intention of rescuing indebted companies - at the peak of their crisis - and designates Agra as its main partner for consolidation in Brazil. In an organized operation, which excludes the participation of minority shareholders, Agra and Veremonte create a new company, the Agra Veremonte Holding, with 65% of participation of Bañuelos and 35% of the Brazilian company. This company will be absorbed by Klabin Segall, which will issue new shares.

At the end of the operation, the holding will have 58% of the share capital of Klabin Segall. Agra and Veremonte will invest R$ 110 million (US$ 50 million) in the new company, R$ 20 million (US$ 9.1 million) of which will be invested immediately and the other R$ 90 million (US$ 40.9 million) will depend upon the renegotiation of the debt - which should take place until July 15, under the penalty of having the business cancelled - the same model used in Abyara.

Besides the R$ 110 million (US$ 50 million), the new company will incorporate two projects of Agra in a total of R$ 44 million (US$ 20 million). One of them, with two lots, in Vila Leopoldina, which is 70% sold, according to Agra, and the other one in São Bernardo, with two residential and one commercial projects, nearly 50% sold. Both of them will be delivered in the end of 2010. "They are projects with great results that generate immediate income for the new company", affirms Luis Roberto Horst.

Yesterday, in an independent operation, Klabin Segall closed the sale of 50% of the Seridó undertaking by R$ 50 million (US$ 22.7 million). With that, it receives an immediate cash support of R$ 70 million (US$ 31.8 million) with possibility of getting to R$ 160 million (US$ 72.7 million). The old partners will continue ahead of Klabin until 2014. Agra will participate in the management. Regarding Veremonte, the same way as it happened in Abyara, it will not be part of the management or the Board of Directors. The idea is to use the synergies among the three companies - Agra, Klabin e Abyara - and, create one single management structure. Klabin is the only of them to have a building company and will serve the other two.