2 Min Read
SAO PAULO, June 5 (Reuters) - Investors led by Grupo BTG Pactual SA's Timberland Investment Group will pay about $403 million for Weyerhaeuser Inc's Uruguay timberlands and a manufacturing business, expanding the timber asset manager's presence in the South American country.
Timberland Investment Group said in a statement Monday the acquisition includes over 300,000 acres (120,000 hectares) of timberlands in Uruguay's northeastern and north central regions. It also includes a plywood and veneer manufacturing facility, a cogeneration facility, and a seedling nursery.
Timberland Investment Group, one of the world's biggest timber asset managers, is part of BTG Pactual Asset Management - also the money management arm of Latin America's largest independent investment banking firm.
BTG Pactual has for years run Timberland Investment Group, taking advantage of growing global interest in forestry assets across Latin America.
The transaction is subject to regulatory approval and is expected to close in the fourth quarter. Timberland Investment Group, which is overseen by fund manager Gerrity Lansing, has operated in Uruguay since 2005.
Units, a blend of common and preferred shares of BTG Pactual, shed 0.7 percent to 14.30 reais. The stock is up 4.9 percent this year. (Reporting by Guillermo Parra-Bernal; Editing by Bernadette Baum)