AbitibiBowater to sell ACH stake
December 23, 2008 By Pulp & Paper Canada
AbitibiBowater accepted a proposal for the sale of its interest in ACH Limited Partnership to an industrial energy …
AbitibiBowater accepted a proposal for the sale of its interest in ACH Limited Partnership to an industrial energy producer. The papermaker owns a 75% stake in the partnership, the sale of which is expected to rake in $197.5 million.The assets included in the proposal have a combined capacity of 136.8 MW. If the sale goes through, the purchaser would assume responsibility for $250 million of the ACH Limited Partnership’s term debt.
“The signing of this proposal marks continued progress with our de-leveraging initiatives,” president and CEO David J. Paterson said. “We look forward to continued de-leveraging progress as we implement additional measures to improve our free cash flow generation.”
The deal remains subject to due diligence, and the potential buyer has yet to be named. AbitibiBowater did confirm however, the Iroquois Falls and Fort Frances mills in Ontario, will not be included in the sale.
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