Quebec issues cease trade order against Mercer's shareholder rights plan adopted by Fibrek; Mercer plans to mail notice of change by April 13 and continue with offer
April 11, 2012
– Mercer International Inc. (Nasdaq:MERC - News) (TSX:MRI.U) ("Mercer") announced that the Bureau de decision et de revision (Quebec) (the "Bureau") has issued a cease trade order against the previously announced shareholder rights plan adopted by Fibrek Inc. ("Fibrek") on April 11, 2012.
Jimmy S.H. Lee, Mercer's Chairman and Chief Executive Officer, stated: "We are disappointed with the decision of the Bureau, which we believe inhibits Fibrek shareholders from receiving the higher consideration under our offer for all of the outstanding common shares of Fibrek (the "Offer"). Despite the decision, we are continuing with our Offer and plan to mail a notice of change, variation and extension respecting the increased Offer to Fibrek shareholders on or before April 13, 2012."
Proceedings continue before the Bureau respecting Mercer's application for a cease trade order and/or other relief in respect of the take-over bid made by AbitibiBowater Inc. for Fibrek. Additionally, the Supreme Court of Canada has granted Fibrek's request to expedite its application for permission to appeal the Quebec Court of Appeal's decision to maintain the cease trade order of the proposed private placement of special warrants to purchase common shares of Fibrek to Mercer.
Any questions or requests for further information respecting the Mercer's Offer should be directed to Laurel Hill Advisory Group Company, the information agent under Offer, at 1-877-304-0211 (toll free in North America) or 1-416-304-0211 (collect calls) or by email at firstname.lastname@example.org.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Mercer has filed with the United States Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4, as amended and Schedule 14A Proxy Statement in connection with the proposed transaction. INVESTORS AND SECURITYHOLDERS OF MERCER AND FIBREK ARE URGED TO READ THESE DOCUMENTS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS THERETO, AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Such documents will be available free of charge through the website maintained by the SEC at www.sec.gov or by calling the SEC at telephone number 800-SEC-0330. Such documents may also be obtained for free on Mercer's website at www.mercerint.com.
Mercer International Inc. is a global pulp manufacturing company. Mercer operates three NBSK pulp mills with a consolidated annual production capacity of 1.5 million tons. To obtain further information on the company, please visit its web site at www.mercerint.com.