Toronto Stock Exchange defers Fibrek's shareholder rights plan announced in response to Resolute Forest Products unsolicited insider bid; deferral does not affect plan's operation
December 23, 2011
– Fibrek Inc. ("Fibrek") announced today that in connection with its recently announced shareholder rights plan (the "Rights Plan"), the Toronto Stock Exchange (the "TSX") has determined, in accordance with its rules, to defer its consideration of the acceptance for filing of the Rights Plan until such time as the TSX is satisfied that the Autorité des marché financiers (AMF), the Québec securities regulatory authority, will not intervene by virtue of National Policy 62-202 - Take-Over Bids - Defensive Tactics.
The deferral does not affect the operation of the Rights Plan which remains effective in accordance with its terms.
The TSX deferral is typical in situations in which a shareholder rights plan is adopted as a response to a take-over bid. As previously disclosed, the Rights Plan has been adopted by Fibrek's Board of Directors (the "Board") as part of several other steps in response to the unsolicited insider bid of AbitibiBowater Inc. (carrying on business as Resolute Forest Products).
Fibrek (TSX: FBK) is a leading producer and marketer of high-quality virgin and recycled kraft pulp. The company operates three mills located in Saint-Félicien, Québec, Fairmont, West Virginia, and in Menominee, Michigan with a combined annual production capacity of 760,000 tonnes. Fibrek has approximately 500 employees. The Saint-Félicien mill provides northern bleached softwood kraft pulp (product known as NBSK pulp) to various sectors of the paper industry mainly in Canada, the United States and Europe, for use in the production of specialized products. The Fairmont and Menominee mills manufacture air-dried recycled bleached kraft pulp (product known as RBK pulp) and primarily supply manufacturers of fine uncoated paper, tissue paper for commercial and industrial uses, and coated paper in the United States.