Fibrek issues statement to withdrawal of Mercer offer, maintains board believes Resolute Forest Products significantly undervalues its common shares

Sandy Yang

Sandy Yang

MONTREAL , April 30, 2012 (press release) – Fibrek Inc. ("Fibrek" or the "Company") confirmed today that Mercer International Inc. ("Mercer") has announced that it has unilaterally terminated its support agreement with Fibrek with respect to its offer to acquire all of the common shares of Fibrek.

As stated in its directors' circular dated December 26, 2012, as supplemented by the notice of change to the directors' circular dated February 6, 2012, the Board of Directors believes that the offer by AbitibiBowater Inc. (doing business as Resolute Forest Products) ("Abitibi") significantly undervalues the common shares of Fibrek, which have, as at February 3, 2012, been valued at $1.25 to $1.45 by Canaccord Genuity Corp.

As a result of the termination of the Mercer support agreement, Mercer has instructed Computershare Investor Services Inc., the depository for the offer, to promptly return all common shares of Fibrek tendered thereunder.

About Fibrek

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.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again.