Edwood Supplier Buys Sappi Usutu

July 11, 2013 firetreeadmin

Swazi company buys Sappi Usutu for E1bn

02/07/2013 03:04:00 by Welcome Dlamini

MBABANE – Sappi Usutu has been sold to Montigny Investments Limited for a cash price of E1 billion, it was announced yesterday.

Montigny is a local company that deals in timber products and has its principal place of business in Nhlangano in the Shiselweni region but already has a saw mill at Bhunya next to Sappi Usutu pulp mill.

Even though an agreement has already been entered into, the sale is still subject to the fulfilment of certain conditions. These include the approval of His Majesty King Mswati III, the approval from the competition authorities in Swaziland and South Africa, approval in terms of the South African Exchange Control Regulations and Montigny obtaining and furnishing the necessary guarantees in relation to the acquisition consideration to Sappi.

Transaction

It is anticipated that by September 30, 2013, the transaction would have been completed but the date may still be extended. In a statement released yesterday, Sappi Limited disclosed that what was being sold consists of approximately 67 000 hectares of softwood plantations, a decommissioned pulp mill and two villages in close proximity to the pulp mill.

Sappi Usutu has about 1 000 fully-serviced houses found in villages located in Mhlam-banyatsi Village and Bhunya Township. Two weeks ago, the Times SUNDAY reported that a local investment company was acquiring Sappi Usutu’s housing portfolio unit at a price of E100 million.

Reference: Swazi Times Website – http://www.times.co.sz/news/88995-swazi-company-buys-sappi-usutu-for-e1bn.html