CHILE – After analyzing various options that emerged from its search for a strategic partner announced late last year, Masisa made the decision to focus its commercial activity on its forestry and higher added value businesses in the Andean Region, Central America, the United States, Canada and other export markets, maintaining its manufacturing capacity to supply the region in Chile and Venezuela.

Consistent with this decision, the Board approved the sale of its manufacturing business in Argentina and the disinvestment of its industrial assets in Mexico and Brazil, after which it expects to raise in excess of USD 500 million.

Masisa informed the market that, “The Board of Directors of Masisa considered that this important decision – which implies ending the search process for a partner – represents the most attractive strategy for the company’s shareholders, since it allows a significant value capture, long-term improvement of profitability, a reduction in future investment needs and significant reduction of the level of debt, reducing the ratio of Net Financial Debt to EBITDA from 4.2 times to a range between 2 and 2.5 times”.

In the case of Argentina, a contract has been signed for the sale of Masisa Argentina’s industrial business to the Austrian company EGGER for USD 155 million, which is expected to materialize within the next three months. Sale’s processes for the industrial assets in Mexico and Brazil are underway, and in both cases offers have been received and are currently being evaluated.

In the case of Argentina, a contract was signed today for the sale of Masisa’s industrial business in Concordia to the Austrian company EGGER for USD 155 million, which is expected to materialize within the next three months. Masisa also reported that sale processes are already under way in Mexico and Brazil, and in both cases, offers have already been received, which are in the evaluation stage. In Brazil the industrial assets of Masisa include two plants located in Montenegro, Rio Grande do Sul and Ponta Grossa, Paraná. The capacity in Montenegro is 650 thousand m3 of MDP and 300 thousand-m3 of melamine laminate. In Ponta Grossa the MDF plant has a capacity of 300 thousand m3 and 300 thousand m3 of melamine laminate.

In Mexico Masisa operates four industrial plants: Durango, Chihuahua, Zitácuaro and Lerma. The unit of Durango has a capacity of 155 thousand m3 of Particle Board (PB), 220 thousand m3 of MDF, 206 thousand m3 of melamine laminate and a resins plant. The unit of Chihuahua consists of a PB plant with a 275 thousand m3 capacity and one of 117 thousand m3 of melamine laminate capacity. In Zitácuaro the unit consists of a PB plant with a production capacity of 184 thousand m3 and another plant with capacity for 103 thousand m3 melamine laminate. Finally Lerna is a unit for the production of resins and formaldehyde.

It should be noted that the company will maintain its forests in Chile, Argentina and Venezuela, valued at more than USD 560 million, and that have been a source of productive and financial stability for Masisa.

Once these transactions are completed, it is estimated that the company will improve business profitability with savings of more than USD 35 million in financial expenses and a reduction of approximately USD 15 million of annual corporate expenses related to the new business structure.

Masisa is being advised in these processes by the consortium formed by the Colombian investment bank Inverlink and UBS Investment Bank.

With this decision, the company will focus its efforts on accelerating its commercial strategy and maximizing its profitability through its strengths and competitive advantages, such as innovation and design, expanded value-added alternatives in products and services, boosting new integral solutions and developing sales channels through new technologies.