News
Tembec Sells Large AV Nackawic and AV Cell Stake (May 01, 2008)

Montreal, QC -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 …

Montreal, QC -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.