UPDATE 1-Chile CMPC shareholders OK $500 mln capital increase

Thu Jan 24, 2013 10:14am EST

Related Topics

* CMPC expanding its Guaiba plant in Brazil

* Company to invest $1 bln per year through 2015

* CMPC mulls $500 million bond issue in H1

SANTIAGO, Jan 24 (Reuters) - Shareholders of Chilean forestry and paper company CMPC on Thursday approved a $500 million capital increase intended to help fund the company's planned expansion of its Guaiba plant in Brazil's Rio Grande Do Sul state.

The company expects to see its wood pulp output jump to 4.1 million tonnes per year after the expanded Brazilian plant starts operating in the first quarter of 2015.

The capital increase was originally set for up to $750 million. If needed, CMPC could call for another shareholder meeting to approve an around $250 million capital hike.

CMPC will invest over "$1 billion per year every year in 2013, 2014, 2015," including Guaiba, company President Eliodoro Matte told reporters after the meeting.

CMPC is also considering issuing bonds for $500 million during the first half of the year to help fund its Brazilian expansion plans, Matte added.

Shares in CMPC were trading 0.48 percent lower in midday Thursday trade, while Chile's blue-chip IPSA stock index was down 0.64 percent.

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