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UPDATE 1-Brazil's Funcef to exercise tag-along rights in Eldorado stake sale
October 4, 2017 / 6:34 PM / in 2 months

UPDATE 1-Brazil's Funcef to exercise tag-along rights in Eldorado stake sale

(Adds details of transaction in 2nd, 4th paragraphs)

SAO PAULO, Oct 4 (Reuters) - Brazilian pension fund Funcef decided to exercise tag-along rights and sell its 8.53 percent stake in wood pulpmaker Eldorado Brasil Celulose SA to Netherlands-based Paper Excellence BV, according to a statement on Wednesday.

Eldorado controlling shareholder J&F Investimentos SA agreed in September to sell the pulpmaker to Paper Excellence, controlled by the owners of Indonesia’s Asia Pulp & Paper Co Ltd, for 15 billion reais ($4.8 billion).

The stake held by Funcef, the pension fund representing employees at state bank Caixa Econômica Federal, is valued at around 650 million reais, a person with knowledge of the transaction said.

Funcef owns the stake indirectly through investment vehicle FIP Florestal, which is also partly owned by Petros, the pension fund of oil workers at Petroleo Brasileiro SA.

Petros has yet to announce whether it will sell its own 8.53 percent stake in the investment vehicle. ($1 = 3.1277 Brazilian reais) (Reporting by Aluisio Alves; Writing by Bruno Federowski; Editing by G Crosse and Lisa Shumaker)

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