Florida’s Rayonier offers $807M US in friendly offer for Tembec

May 25, 2017

By: CBC News

Montreal-based lumber, paper and pulp producer Tembec has received an $807 million US offer to take over the company from Florida-based conglomerate Rayonier Advanced Materials.

Jacksonville-based Rayonier is offering Tembec shareholders $4.05 Cdn per share, or 0.2302 shares in the new combined company for every share that they own.

The deal, which would see Rayonier assume $487 million US of Tembec’s debt, would keep Tembec’s headquarters in Montreal and maintain its existing facilities.

“They’re all profitable,” Rayonier CEO Paul Boynton said on a conference call, referring to Tembec’s various operations in Ontario, Quebec and France. “We plan to run them all [and] invest in them all.”

Toronto-based investment firm Fairfax Financial is Tembec’s largest shareholder with almost 20 per cent of the company, and it supports the transaction.

If approved, the deal is expected to close in the second half of 2017.

By: CBC News

Your comments.

Your #1 source for forestry and forest industry news.

Built by Sofa Communications