Resolute Forest Products raises stake in Fibrek to 70.9%
Resolute buys additional shares in Fibrek. Offer period for all the remaining Fibrek shares to expire definitely on May 17.
Resolute Forest Products (Resolute), formerly AbitibiBowater has raised its stake in Fibrek by another 7.6% and is currently holding 70.9% of the outstanding shares in the Montreal-based market pulp producer. As aggregate consideration for the 9,894,933 additional shares of Fibrek taken up on 15 May, Resolute will distribute approximately 280,000 newly-issued shares of its common stock, the company announced. Additional CAD5,4m in cash will be paid through Resloute's wholly-ownde subsidiary, RFP Acquisition Inc.
Fibrek produces northern bleached kraft pulp (NBSK) and recycled bleached kraft pulp (RBK). The company has 500 employees and runs three mills in Canada and the US. The combined annual production capacity amounts to 760,000 air-dried metr.t.
On 9 May, Fibrek has announced major changes to the company's Board of Directors (BOD) and the management team. The entire BOD of Fibrek stepped down, following Resolute taking 63.3% of shares in the company. In addition, five high members of Fibrek’s management team resigned from their positions with immediate effect.
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