PORTLAND, OR — Pope & Talbot announced that it has agreed to sell three pulp mills to one or more affiliates withi…
PORTLAND, OR — Pope & Talbot announced that it has agreed to sell three pulp mills to one or more affiliates within the Sinar Mas Group. The value of the transaction to Pope & Talbot is approximately $225 million, including the assumption of certain liabilities and $100 million of working capital proceeds that is not subject to the sale, to be realized after closing. The three pulp mills, located in Nanaimo, BC, Mackenzie, BC, and Halsey, OR, are producers of high-quality softwood pulp.
“We are delighted with this development, as this is an important milestone in maximizing value for our stakeholders,” said Harold Stanton, Pope & Talbot President and CEO. “The past 6 months have been very trying on our folks and it is exciting that they will have the opportunity to join a world class pulp and paper producer like Sinar Mas Group.”
The sale is subject to approval by the US Bankruptcy Court and the Canadian Court, and will be effected under procedures that provide for opportunity for other parties to submit competing proposals subject to court approved bidding procedures and protections for the purchaser(s). The transaction is also subject to customary regulatory approvals in Canada and the United States, and Pope & Talbot expects to receive such approvals and close the transaction in the first quarter of 2008.
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