Brazil’s Votorantim Celulose e Papel said on Tuesday it would buy a 28.03 percent stake in Aracruz Celulose for 2.71 billion reais ($1.16 billion) as part of a plan to merge the two companies.

The process was suspended in September after Aracruz <ARCZ6.SA><ARA.N>, a Brazilian pulp producer, reported losses with foreign exchange derivatives and its chief financial officer resigned.

VCP <VCPA4.SA><VCP.N>, as the company is known, said it had signed an agreement with the families who control Aracruz and it would pay the amount in six instalments. The first payment, of 500 million reais, is scheduled for Wednesday.

VCP already holds 28 percent of Aracruz and controls the company with the Safra and Lorentzen families.

In a separate report, Aracruz said banking creditors that account for more than 80 percent of the company’s $2.13 billion debt from derivative transactions have shown “their express agreement to the minimal terms” put forward by Aracruz for the restructuring of the debt.

According to the proposal, Aracruz will have up to nine years to pay its debt.

The company will also resume the expansion project at the Guaiba Unit, from the first half of 2011.

Aracruz shares closed on Monday at 2,65 reais and VCP was last traded at 16.16 reais. ($1 = 2.333 reais)

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