AbitibiBowater Inc., doing business as Resolute Forest Products, announced May 2 that it owned a majority of the shares of Quebec-based pulp producer Fibrek Inc. As of May 4, Resolute owned 63%.
AbitibiBowater Inc., doing business as Resolute Forest Products, announced May 2 that it owned a majority of the shares of Quebec-based pulp producer Fibrek Inc. As of May 4, Resolute owned 63%.
Resolute’s offer to buy shares remains open and has been extended to May 17. As well, the company has stated it intends to carry out a second step transaction to acquire the Fibrek shares not deposited in the offer.
The acquisition will boost Resolute’s market pulp offering. Fibrek operates a northern bleached softwood kraft pulp mill at St. Felicien, Que., and two recycled bleached kraft pulp mills in the United States. The St. Felicien mill was previously owned by Resolute, and several Resolute sawmills in the area provide fibre for the mill.
Resolute’s $1-per-share offer was viewed as a hostile takeover, and strongly opposed by the Fibrek board.
According to a Canadian Press article on May 2, Resolute can take over Fibrek after acquiring two-thirds of its shares or winning a proxy vote on amalgamation supported by two-thirds of shareholders casting ballots.
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