UPDATE 3-Paper Excellence wins arbitration to buy control of Brazil's Eldorado -filing

(Changes sourcing to securities filing)

SAO PAULO, Feb 3 (Reuters) - Netherlands-based Paper Excellence BV has won an arbitration case against Brazilian group J&F Investimentos SA to complete the acquisition of paper mill Eldorado Brasil Celulose SA, the pulpmaker said in a securities filing late on Wednesday.

Paper Excellence, controlled by Indonesia’s Jackson Widjaja, already has a 49% stake in Eldorado and will be allowed to acquire the remaining stake, as determined by the 2017 sale contract, the filing said, confirming a Reuters report.

The exact value of the deal is subject to changes in Eldorado’s debt and other adjustments.

The arbitration mandates that the full deal be priced at 15 billion reais ($2.75 billion), as set forth by the sale contract. Paper Excellence has around 11 billion reais deposited in an account to complete the deal, according to two sources with knowledge of the matter.

Before acquiring Eldorado control, Paper Excellence must free up collateral owned by J&F Investimentos in some of Eldorado’s debt, the filing said.

The dispute began in September 2018, when billionaire brothers Joesley and Wesley Batista, owners of Eldorado and behemoth meatpacker JBS SA, canceled the sale to Paper Excellence.

J&F Investimentos SA, a holding company owned by the Batista brothers, had agreed to sell flagship asset Eldorado in September 2017, and agreed to receive the full price within a year.

$1 = 5.4410 reais Reporting by Tatiana Bautzer, writing by Sabrina Valle; Editing by Sonya Hepinstall, Steve Orlofsky and Richard Chang