Resolute Forest Products takes over more Fibrek shares

Fibrek's Saint-Félicien Mill
Source: Fibrek
26 Apr 2012 − 

Resolute Forest Products, formerly Abitibi Bowater, is still leading the race for the acquisition of fellow Canadian pulp producer Fibrek. Now, the company took another big step towards the hostile takeover of Fibrek.

On 24 April Resolute Forest Products communicated that it had taken over an additional 2,664,351 shares in Fibrek. Together with the shares the company acquired on 11 April, Resolute now holds approximately 48,8% of the currently outstanding Fibrek shares. On 11 April Resolute announced the takeover of about 62 million shares, translating to 46,8 % of outstanding shares in Fibrek.

Fibrek owns three pulp mills in Canada that have an aggregate capacity of 760,000 tpy of RBK and NBSK pulp. Resolute had announced the planned hostile takeover for C$1 per share of Fibrek back in February. Subsequently, Mercer International had offered C$1.30 per share for Fibrek and had even increased its bid to C$1.40 on 11 April.

Now, Resolute Forest Products has extended its offer once again until 4 May; the company needs at least 50.01% of the shares to clinch the transaction.

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