Fibrek issues statement to withdrawal of Mercer offer, maintains board believes Resolute Forest Products significantly undervalues its common shares
April 30, 2012
– 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.
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.