Tembec Sells Large AV Nackawic and AV Cell Stake (April 14, 2008)
April 14, 2008 By Pulp & Paper Canada
Tembec has sold a big chunk of its interest in AV Nackawic and AV Cell to Aditya Birla Group. Tembec has sold 20% o…
Tembec has sold a big chunk of its interest in AV Nackawic and AV Cell to Aditya Birla Group. Tembec has sold 20% of the 25% equity interest it held in the issued and outstanding shares in the capital stock of both these facilities. Birla was already Tembec’s partner in these operations.
The 20% was sold for roughly $9 million. In addition, Tembec sold off to Birla, at face value, a loan it previously made to AV Cell in the principal amount of $6.75 million. Tembec received all the accrued and unpaid interest on the loan upon closing.
Tembec cited a need to focus on its resources and strengthening the company’s balance sheet as reasons for the sale.
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