Norske Skog sells forest in Brazil

Norske Skog has entered into an agreement with a Brazilian company for the sale of around 21,500 hectares of forest in Brazil, of which 10,500 hectares are productive forest. The buyer is CMNPAR Four Participacoes SA, a Brazilian company, which is advised by Global Forest Partners LP, a US based investment advisor.”We are satisfied with the sale of the forest property in Brazil, which did not generate cash and was not a core asset. This will improve our financial position by reducing our net debt,” says Sven Ombudstvedt, CEO of Norske Skog.The sales price is 63.5 million Dollars (approximately 335 million Norwegian Kroner). The sale has resulted in a gain of around 43 million Norwegian Kroner, which will be included in the first quarter of 2011.