CHILE – The board of directors of the Chilean company Masisa informed that it will stop consolidating the results of its subsidiaries operations in Venezuela, as have other multinationals from other countries with investments in Venezuela.

The company made this decision referring to the difficulty of reasonably measuring the results of these subsidiaries due to “significant economic distortions” in the country.

Some of the distortions Masisa took as reference to carry out its deconsolidation of results are the hyperinflation of Venezuela and the depreciation of the local currency that evolved during the last months.

The main business of Masisa is the manufacture and commercialization of wood panels for furniture and interior architecture in Latin America.

The main effect of this deconsolidation is that the company estimates to have a positive equity effect of USD 22 million and an effect on results of USD 280 million of losses generated mainly by the reclassification of conversion reserves resulting from the variation of the exchange rate in the historical investment in Venezuela, which does not affect equity.