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RESTRUCTURING: CASCADE LOOKS TO CORPORATE MAKEOVER


June 1, 2000
By Pulp & Paper Canada

KINGSEY FALLS, QC — Cascades Inc. is considering the merits of a corporate restructuring that would put most of its subsidiaries into one operating company. The purpose is to attract more buyers of i…

KINGSEY FALLS, QC — Cascades Inc. is considering the merits of a corporate restructuring that would put most of its subsidiaries into one operating company. The purpose is to attract more buyers of its stock among pension fund managers, mutual funds and other large institutional investors. “Institutions have told us repeatedly the present structure with several publicly traded subsidiaries is too cumbersome,” said Laurent Lemaire, president and chief executive officer. The four companies destined to be rolled into Cascades are Paperboard Industries International Inc., Rolland Inc., Perkins Papers Ltd. and Boralex Inc. Cascades would like to buy out Domtar’s 50% stake in the highly profitable Norampac Inc. joint-venture, but Domtar is not selling. As well, the company is looking into four merger or acquisition proposals in North America. Details on the restructuring are expected by August. First-quarter earnings for 2000 were $11 million, up from $4 million a year earlier, on net sales of $707 million, against $624 million.


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