Canada-based Resolute Forest Products, Inc., which owns the Fort Frances paper mill, has entered into an agreement to attain Fibrek Inc.
The announcement came last month. Fibrek, a 500-employee company, is a producer and marketer of recycled kraft pulp. Fibrek operates three mills — in Canada, West Virginia and Michigan.
Resolute, based in Montreal, and Fibrek have arranged with RFP Acquisition Inc., a subsidiary of Resolute, a proposition for Resolute to acquire all the Fibrek shares. The shares are the ones not deposited in the take-over bid launched in December last year.
Under the terms of the arrangement, holders of the Fibrek common shares will be given the same choices of per-share consideration previously offered in the take-over bid.
The companies have also agreed to convene a special meeting of Fibrek’s shareholders to vote on the proposed arrangement. The companies have said they will apply for an order from the Superior Court of Quebec to have this meeting. The special meeting is scheduled for July 23.
Resolute Forest Products produces newsprint, commercial printing papers, market pulp and wood products. The company owns or operates 21 pulp and paper mills and 22 wood products facilities in the United States, Canada and South Korea. Resolute markets its products in more than 90 countries.
The shares of Resolute trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Fibrek’s Canada mill provides northern bleached softwood kraft pulp to various sectors of the paper industry, mainly in Canada, the United States and Europe. The West Virginia and Michigan mills manufacture fine uncoated paper, household paper for commercial industrial uses and coated paper for the United States.
