JOHANNESBURG, South Africa, July 16, 2014 /PRNewswire/ -- Sappi today confirmed that they have concluded the sale of Sappi's Usutu Forest Products Company Limited to local Swaziland business Montigny Investments.
Sappi announced on 01 July 2013 that it intended to dispose of Usutu Forest Products Company Limited to Montigny Investments Limited, Sappi can confirm that all conditions precedent to the successful conclusion of the transaction have been met as of 15 July 2014.
The purchase consideration to be paid by Montigny to Sappi of ZAR1,000,000,000 ( one billion Rand) will be used for general corporate purposes and will reduce Sappi's net debt.
Commenting on the sale, Sappi Limited Chief Executive Officer Steve Binnie said "We are extremely happy to have been able to sell our Usutu business to Montigny. The transaction reflects the change in Sappi's strategic focus towards high growth segments such as specialised cellulose and packaging. The proceeds of the sale will contribute to paying down debt."About Sappi Sappi Limited (JSE: SAP) is a global pulp and paper company headquartered in Johannesburg, South Africa with over 13,500 employees, and manufacturing operations on three continents in seven countries and customers in over 100 countries around the world. Learn more about Sappi at www.sappi.com. About Montigny Investments Montigny is registered in the Kingdom of Swaziland and carries on business within the timber industry. It supplies products to the mining industry, produces finished products for the building industry, supplies by-products to the bio-fuel, leather and charcoal industries, and produces packaging materials and poles. Logo - http://photos.prnewswire.com/prnh/20110728/MM43821LOGO SOURCE Sappi