First Step Towards Balance Sheet Optimization/Natureza Project Funding

Good sign for balance sheet optimization ahead of a potential Natureza project approval. We think CMPC's decision to sell its corrugated board business for $420M (pending closing) is an important first step toward optimizing the balance sheet ahead of a potential major capex commitment with the Natureza project ($4.5B new pulp mill in Brazil with 2.5mtpa capacity, pending board approval). Further steps needed: today's announcement covers ~10% of Natureza capex or implies a 0.3x Net debt/EBITDA reduction (from ~4.2x in 2Q26), all else equal, and more actions might include further asset sales (forest/land assets, sale/leaseback) and off-/on-balance-sheet debt (e.g., hybrid bonds, ECA credit). CMPC announced the sale of its Chilean containerboard and corrugated packaging business—Envases Impresos Cordillera and Chimolsa—to Smurfit Westrock for an enterprise value of $420M (17% of market cap, 5% of consolidated EBITDA), implying ~7.0x–7.6x EV/EBITDA, in line with global peers at 7-8x, with