Mercer International Inc. enters into a support agreement to acquire Fibrek Inc.
Mercer International Inc. has entered into a support agreement to acquire all of the issued and outstanding common shares of Fibrek by way of take-over bid.
Highlights of the agreement:
- Offer price of $1.30 per Fibrek Inc. common share payable in cash, Mercer International Inc. common stock or a combination of cash and Mercer common stock (subject to proration).
- The offer represents an 81% premium over the closing price the day before the announcement of the unsolicited bid of AbitibiBowater Inc. (doing business as Resolute Forest Products) and a 30% premium over Abitibi’s unsolicited bid.
- Fibrek’s Board of Directors has unanimously determined that it would be in the best interests of Fibrek and its shareholders to support the Mercer Offer and recommends that shareholders tender their common shares to the Mercer Offer
“This has been a challenging time for Fibrek as we have sought to maximize value for our shareholders and advance the interests of our other stakeholders. We are pleased to support Mercer’s offer and recommend it to our shareholders as we believe this offer meets our goal and provides a significant premium relative to Abitibi’s unsolicited offer” stated Hubert T. Lacroix, Chairman of the Board of Directors of Fibrek.
“We had a responsibility to our shareholders to pursue alternative options in their best interests and that is exactly what we have done in supporting this offer from Mercer, a leader in the industry who is committed to market pulp,” added Pierre Gabriel Côté, President and Chief Executive Officer of Fibrek. “There are significant similarities between Fibrek and Mercer given that we are both pulp producers with a culture of operational excellence,” concluded Mr. Côté.
Source: Fibrek (Read full release)
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