English 
Francês 
Alemão 
Italiano 
Japonês 
Norueguês 
Portuguese 
Spanish 
2 min of reading 
J&F Group, Owned by the Batista Brothers, Is Set to Lose Rights Over the Pulp Mill in Três Lagoas to Billionaire Indonesian Jackson Widjaja
Yesterday (02/03) Eldorado Brasil Celulose confirmed it had received the ruling from the International Chamber of Commerce (ICC) in the arbitration proceeding initiated in September 2018. The decision from the French arbitration tribunal, by a 3-0 vote, determines that the J&F group, owned by the Batista brothers, will have to sell 100% of Eldorado Celulose, under the terms of the agreement made between the parties in 2017.
Also Read
- 100,000 Scholarships; at the end of the course, students can secure a job at large companies in Brazil
- Finnish multinational Wärtsilä is hiring engineers for its base in Rio de Janeiro, today February 15
Eldorado Brasil Celulose, prior to the ruling, was controlled by J&F, a holding owned by brothers Wesley and Joesley Batista, who also own, among other companies, the JBS meat processing plants. J&F and Paper Excellence held, respectively, 51% and 49% of the company’s capital. Now, Paper will hold 100% of Eldorado.
The case was brought to court by Paper Excellence in 2019 at the International Chamber of Commerce in arbitration, following disputes between the companies.
-
Chinese giant worth nearly R$ 4 billion that manufactures cables for electric cars, solar energy, and robotics wants to open a factory in SC.
-
Many employers do not know, but the law guarantees domestic workers a 25% increase in salary during trips, 50% for overtime, 20% for night shifts, and 17 additional benefits that can lead to labor lawsuits if not paid.
-
Gasoline prices soar and the question arises: is ethanol more advantageous? The 70% rule reveals the limit with gasoline.
-
The government has made a decision and is starting a test with more ethanol in gasoline, anticipating a mixture of up to 35%, diesel with 25% biodiesel, and a study to assess the impacts on engines.
In a significant announcement, the company also stated that the arbitration tribunal determined that the current governance rules must be maintained until the transaction is completed.
Understand the Case
The J&F finalized the sale of Eldorado Celulose to Paper Excellence for R$ 15 billion, including R$ 7.5 billion in debt. The transaction took place in September 2017.
The company owned by the Indonesian billionaire was given one year to raise all the financing and complete the deal, in a contract that also required the company to renegotiate Eldorado Celulose’s debt with banks, which would release the collateral guarantees offered by the Batistas.
The purchase and sale agreement stipulated that if there was no solution to the issue by September 3, 2018, the Indonesian billionaire’s company would remain a minority stakeholder.
During this period, exchange rate changes and the price of pulp improved Eldorado’s equity value, and Paper Excellence claims the Batistas began to obstruct the settlement of debts.
Paper Excellence accuses the Batistas of acting in bad faith and not cooperating to release the guarantees. It also states that J&F wants to increase the agreed amount. At the time, Batistas’ advisors claimed that releasing the guarantees was an obligation of Paper Excellence.
Seja o primeiro a reagir!