South African paper and packaging firm Mondi will seek the control of Portuguese paper giant Portucel if it wins a privatisation sell-off, the head of Mondi said on Tuesday.
”We want to have control so we can carry out our strategy for the firm,” Mondi chief executive officer David Hathorn told Portuguese news agency Lusa.
”As part of the Anglo-American group we have the financial force to carry out a takeover bid and support the expansion of Portucel.”
Mondi, a subsidiary of South African mining giant Anglo American, is one of five bidders for a 30% stake in Portucel, one of the biggest European producers of uncoated fine paper.
The Portuguese government currently holds 56% of Portucel.
The Portuguese conglomerate Sonae has a 25% stake in Portucel, while a group made up of former executives holds about four percent and an investment group has two percent.
Mondi has an option to buy Sonae’s stake in Portucel and Hathorn said his firm would talk with the conglomerate if its bid for the government’s stake is successful.
The Portuguese government has set a minimum bid price of 334-million euros ($415-million) for the 30% stake.
It is scheduled to announce who the stake will be sold to during the first week of April.
Portuguese Economy Minister Carlos Tavares has said price will not be the main criterion as the government will give preference to a company which will boost Portucel’s role in the European pulp-and-paper business.
The five bidders have been asked to provide the government with a strategic plan for Portucel.
The sale is just one of a number of assets up for sale by the cash-strapped Portuguese government. It is the second in the company’s privatisation.
The four other bidders for the 30% stake are Canadian paper maker Domtar, Paris-based paper company Lecta, Portuguese conglomerate Cofina and Portuguese cement company Semapa. – Sapa-AFP