Enterprising Investor
2 years ago
Paper Excellence Welcomes Resolute Into Its Family of Companies (3/01/23)
RICHMOND, BC, March 1, 2023 /PRNewswire/ - The Paper Excellence Group (the "Group"), through its wholly-owned subsidiary Domtar Corporation ("Domtar"), today announced the successful closing of its previously announced acquisition of Resolute Forest Products Inc. ("Resolute") (NYSE: RFP) (TSX: RFP). Today's acquisition creates a stronger and more resilient diversified forest products company, manufacturing a range of pulp products and specialty, printing, writing, and packaging papers, as well as lumber and tissue. The acquisition of Domtar in 2021 and Resolute today significantly increases the Group's scale, overall product offering and geographic reach.
"We are thrilled to welcome Resolute into the Paper Excellence Group. Resolute's business is complementary to our own. It introduces new products to our offering and allows us to welcome an impressive workforce, strengthening our existing team. We are well positioned with the addition of competitive lumber capacity at a time of significant shortage in housing stock throughout North America," stated Patrick Loulou, Vice Chairman and Chief Strategy Officer of the Paper Excellence Group. "Resolute has shown that it shares our values and high standards related to the environment, our communities, and our people."
"Together we are creating a stronger player in the global marketplace. We look forward to collaborating with our new colleagues, generating long-term value and driving sustainable economic activity in the communities where we operate," said Remi G. Lalonde, Resolute's President and Chief Executive Officer. "The combined company will adopt best practices, sharing a common goal of sustainability leadership, and meaningful community engagement and partnerships, including with Indigenous communities."
Under the terms of the agreement, Resolute stockholders are receiving $20.50 for each share of the Resolute common stock. They also receive one contingent value right ("CVR") per share (on a fully diluted basis) entitling the holder to a share of potential future softwood lumber duty deposit refunds on about $500 million of deposits paid by Resolute. Resolute common stock will cease to be listed on the New York Stock Exchange and the Toronto Stock Exchange.
Advisors
Barclays served as exclusive financial advisor to Paper Excellence, and Latham & Watkins LLP, McMillan LLP, McCarthy Tétrault LLP, and Mehigan LLP served as legal advisors.
CIBC Capital Markets served as exclusive financial advisor to Resolute, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Stikeman Elliott LLP served as its legal advisors.
Financing
Barclays, CoBank, and Bank of Montreal provided financing to Domtar in connection with the transaction.
About Paper Excellence Group
The Paper Excellence Group is a privately held diversified manufacturer of pulp and specialty, printing and writing, and packaging papers, producing over 7 million tons annually with a workforce of over 10,000 in its nearly 40 locations across the Americas and Europe. Through its individual business units, the Group leverages its operational excellence and sustainable high-quality, cost-effective products to deliver high quality pulp and paper to its customers around the world. For more information on Paper Excellence, please visit www.paperexcellence.com. To learn more about Resolute Forest Products, visit www.resolutefp.com.
SOURCE Paper Excellence Group
Enterprising Investor
2 years ago
Resolute Stockholders Vote in Favor of Each Proposal at Special Meeting (10/31/22)
MONTREAL, Oct. 31, 2022 /PRNewswire/ - Stockholders of Resolute Forest Products Inc. ("Resolute" or the "company") (NYSE: RFP) (TSX: RFP) today approved a proposal to adopt the Agreement and Plan of Merger, dated as of July 5, 2022 (as it may be further amended, modified or supplemented from time to time, the "merger agreement"), by and among the company, Domtar Corporation, a Delaware corporation ("Domtar"), Terra Acquisition Sub Inc., a Delaware corporation and a wholly owned subsidiary of Domtar ("Merger Sub"), Karta Halten B.V., a private limited company organized under the laws of the Netherlands, and Paper Excellence B.V., a private limited company organized under the laws of the Netherlands, pursuant to which Merger Sub will be merged with and into the company (the "merger"), with the company surviving as a wholly owned subsidiary of Domtar.
The adoption of the merger agreement required the affirmative vote of stockholders holding a majority of the issued and outstanding shares of Resolute's common stock entitled to vote on such matter.
A total of 81.5% of the issued and outstanding shares of Resolute's common stock entitled to vote at the special meeting of stockholders was voted in favor of the merger agreement. Of the total shares voted, 99.8% were voted in favor of the merger agreement. In addition, the non-binding compensation advisory proposal was also approved by a majority of the shares represented at the meeting.
Resolute currently expects to complete the merger in the first half of 2023, subject to receipt of regulatory approvals and the satisfaction or waiver of the other conditions to the closing of the merger.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 60 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.
https://www.prnewswire.com/news-releases/resolute-stockholders-vote-in-favor-of-each-proposal-at-special-meeting-301663693.html
Pitt77
2 years ago
For the transaction. Objectively, it is a great deal that can only boost the company. In addition, as we keep the expertise in place, by its management, the Cie will surely develop greater challenges. I do not know the Asian buyer, but if they are like M Watsa, it is surely good people, who will be able to benefit the interest of the shareholder.
Pitt77
2 years ago
It is really unfair, for us, all the former shareholders of the CIE (ABWTQ) to have nothing for this transactions. It would not have been very expensive to compensate for us. Faithful employee and shareholder, for 40 years, and to see that an elite make so much money, is frustrating and scandalous. Our capitalist democracies must stop destroying small shareholders by their weapons of mass destruction (CDS), because ethics is the only virtue, which our world needs most, to dominate the global economy. If not, authoritarian regimes will be right for our unscrupulous and devastating ideology.
Pitt77
3 years ago
I do not know but the title is very undervalued. Considering a US economy at the outflow of pandemic, with a growth of 6% of PIB, timber prices should still be at a good level, due to strong demand. Finally, we can conclude that the CIE benefits from this crisis, and again, which will allow it to strengthen its restructuring. That is, that factory closures like Comeau Bay and AMOS, will allow CIE to cut its losses in the decline of paper, and enjoy, delightful subsidies, to develop new revolutionary products.