Overnight, Fibrek Inc. put out a press release acknowledging Resolute Forest Product‘s (formerly known as AbitibiBowater) unsolicited offer to acquire Fibrek.

In the release, Fibrek said their Board of Directors are in the process of reviewing and evaluating the announcement with their financial and legal advisors and will communicate a formal recommendation to their shareholders as soon as possible. To Fibrek’s Board of Directors, Resolute’s unsolicited offer appears opportunistic.

Fibrek is strongly recommending to their shareholders that they defer making any decision until the Board of Directors has had an opportunity to review the full details of Resolute’s unsolicited offer, which have not yet been made available, and to make a formal recommendation as to the merits of such offer. Shareholders will be promptly notified of any recommendation by the Board of Directors through a news release and circular in accordance with applicable securities laws.

The announcement provides that, once the offer is commenced, each Fibrek shareholder will be able to elect to receive consideration per Fibrek common share of either C$0.55 in cash and 0.0284 of a Resolute share, C$1.00 in cash only, or 0.0632 of a Resolute share only, subject to pro-ration based on a maximum cash consideration of approximately C$71.5 million and maximum number of shares of Resolute issuable of approximately 3.7 million.

Fibrek said its Board of Directors will update shareholders from time to time on developments relating to the offer. TD Securities is acting as financial advisor to Fibrek.

Source: Fibrek