Canadian papermaker NorskeCanada announced its plans to acquire the BC operations of Newstech Recycling from the pr…
Canadian papermaker NorskeCanada announced its plans to acquire the BC operations of Newstech Recycling from the privately-owned Belkorp Group for an aggregate purchase price of $58 million, subject to certain closing adjustments.
NorskeCanada will pay $29 million in cash and issue $29 million in common shares to complete the transaction.
In anticipation of closing, NorskeCanada will file a preliminary prospectus qualifying the issuance of the common shares, which will be freely- tradable. The transaction, which is subject to completion of final agreements and regulatory approval, is expected to close in early December.
Newstech, the largest de-inking plant in Western Canada, converts post- consumer newspapers and magazines into a pulp which is used by NorskeCanada for recycled content in its newsprint and directory paper. NorskeCanada is currently Newstech’s primary customer with annual purchases of approximately 120,000 tonnes.
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