At a General Extraordinary Shareholders' Meeting ARAUCO agreed a Capital Increase

Corporate Investors
Publicado el 20-05-2020

At a General Extraordinary Shareholders’ Meeting held today, May 19th, 2020, it was agreed by the unanimity of the issued shares, to increase the share capital by US$ 699.962.071, in order to contribute to the financing of the projects developed by the Company, especially the MAPA project, and to strengthen the Company’s financial position, which has been affected by the capital requirements of the various projects it carries and has carried out, by the effects on the market caused by the commercial dispute between China and the United States and by the decrease in demand for products that is observed worldwide as a consequence of the Covid-19 pandemic.

The capital increase will be completed and paid in the following way, conditions and terms:

a/ Through the issuance, in one or several stages and on the date or dates determined by the Board of Directors of the Company, of 11,377,797 paid shares, without par value, that the Board of Directors will issue to be paid by the shareholders with preemptive rights to them or their assignees, in cash, at a price of US$61.52 per share. Shares that are not subscribed by the shareholders entitled to them or their assignees within a period of thirty calendar days, counted from the day in which the term of the preemptive subscription offer to the shareholders begins, will not be placed and their issuance shall have no effect.

b/ Shareholders may transfer all or part of their preemptive share subscription rights to the shares referred to in the preceding paragraph to which they are entitled, transfer that must be made in accordance with the procedure established in the Corporations Law and its Regulations (Ley y Reglamento de Sociedades Anónimas).

c/ The capital increase must be fully paid within the term that expires on December 31st, 2021. If, as of that date, there are still shares that have not been issued in relation to the capital increase, the capital shall be reduced to the amount actually paid, and to the shares effectively issued.

d/ The Board of Directors has been amply empowered to adopt all the necessary resolutions in order to carry out the abovementioned capital increase.

Of the total capital increase agreed upon, it is estimated that US$250 million will be required to be paid during the year 2020. The balance will be paid during the year 2021, depending on the resources required in that year.