'Legitimate' offer made to buy Resolute Forest Products' 26-hectare sawmill site in Oakhill, Nova Scotia, says a manager at the sawmill who is leading the investment group behind the offer

LOS ANGELES , November 8, 2012 () –

An investment group has made an offer to buy the 26-hectare (64 acres) sawmill site in Oakhill, Nova Scotia, owned by Resolute Forest Products Inc.’s Bowater Mersey Paper Co., southshorenow.ca reported on Nov. 7.

Montreal, Quebec-based Resolute Forest Products declined to comment. The company does not respond to these types of inquires and will make a public statement when it has “something to announce,” said spokesperson Seth Kursman.

The offer is “legitimate,” said Hans Pedersen, an Oakhill sawmill manager who is leading the investment group behind the offer. He indicated that he could not provide further details, southshorenow.ca reported.

The province has stated that it is negotiating with Resolute Forest Products to acquire its Nova Scotia assets, which are all on the seller’s block. Last year, the province offered a C$50-million bailout to keep the sites open.

The company announced in June that it would permanently close its operations in Oakhill and Brooklyn, Nova Scotia. This includes the Oakhill lumber mill, a power company, and a paper mill. The sawmill employs about 100 workers, reported southshorenow.ca.

The primary source of this article is southshorenow.ca, Bridgewater, Nova Scotia, on Nov. 7, 2012.

 

* 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.