BRAZIL - Eucatex signed a composition agreement with the Public Ministry of the State of São Paulo (MPSP), the municipality of São Paulo and BTG Pactual Bank.

The company will pay USD 7.2 million to the municipality of São Paulo to close financial deviation proceedings.

In addition, Eucatex will have BTG as a partner, which has committed to acquire shares held by two minority shareholders, which until then were blocked.

The bank bought the shares held by the company's foreign vehicles that were in liquidation and will now hold about 33% of the company via preferred shares.

"The arrival of the new partner and the extinction of a relevant judicial liability will allow the company to continue with its activities in a stable manner and with legal security," said Eucatex.

The company explained that its control group will not change with the entrance of BTG Pactual.