In this proposal, Domtar Corp.'s parent company will pay US $ 20.50 per share of Resolute. The company will also have Resolute's headquarters in Montreal.
Article author:
Canadian Press
Paper Excellence Group has signed a contract to purchase Resolute Forest Products Inc. has signed a contract to value the company at US $ 2.7 billion.
Patrick Loulou, Chief Strategy Officer of the Paper Excellence Group, said Resolute is ideal for the company's long-term growth strategy.
"This complements the existing pulp, paper and packaging businesses and adds sawn and tissue functionality," Loulou said in a statement.
In this proposal, Domtar Corp.'s parent company will pay US $ 20.50 per share of Resolute. This is a 64% premium on Tuesday's price-earnings ratio.
Resolute shareholders also have the contingent value right to give owners part of a future coniferous lumber tax refund for a deposit of approximately US $ 500 million Resolute paid by June 30. I will receive it.
Resolute Equity Trading on the Toronto Stock Exchange rose C $ 10.46 to C $ 26.69.
Paper Excellence last year acquired Domtar in a worthwhile transaction of approximately US $ 3 billion.
The company announced on Wednesday that Resolute will become a wholly owned subsidiary of Domtar and will continue to operate normally under the name Resolute.
Resolute's management will continue to be located at the company's headquarters in Montreal.
Resolute CEO Rémi Lalonde said the deal will help growth as the company will have access to more tools, capital and opportunities by combining the resources of the Paper Excellence Group. ..
"We are together to form a stronger, more resilient, diverse forest product company, in a position to compete on a truly global scale and to be a trusted business partner. , Has a common commitment to focus on sustainability and care. Its people and communities, "La Rondo said in a statement.
Resolute sells a variety of products on the market, including pulp, tissue, wood and paper. Owns or operates approximately 40 facilities and power generation assets in the United States and Canada.
Transactions are subject to shareholder and regulatory approvals, as well as other customary terms and conditions. The store is scheduled to close in the first half of next year.
Fairfax Financial Holdings Ltd., which holds a 40% stake in Resolute, has agreed to vote in favor of the transaction.
Sign up for daily headline news from Montreal Gazette, a division of Postmedia Network Inc. By clicking the
Thank you for registering.
A welcome email has been sent. If you don't see it, check your junk folder.
The next issue of Montreal GazetteHeadlineNews will arrive in your inbox shortly.
