Tem­bec re­ceives ISS sup­port for Ray­onier takeover

Stockwatch Daily - - INDUSTRIALS & MATERIALS - Mr. Michel Du­mas re­ports

IN­STI­TU­TIONAL SHARE­HOLDER Ser­vices (ISS) has rec­om­mended that share­hold­ers of Tem­bec Inc. vote for the pro­posed plan of ar­range­ment in­volv­ing the ac­qui­si­tion by Ray­onier Ad­vanced Ma­te­ri­als Inc. of all of the out­stand­ing shares of Tem­bec.

In con­nec­tion with this rec­om­men­da­tion, ISS noted that: “The pro­posed premium of­fer con­sid­er­a­tion pro­vides share­hold­ers with flex­i­bil­ity to par­tic­i­pate in the growth op­por­tu­ni­ties as­so­ci­ated with the com­bined busi­ness of in­creased size, scale and liq­uid­ity, and/or to re­ceive the con­sid­er­a­tion in the form of cash that pro­vides im­me­di­ate liq­uid­ity (sub­ject to pro­ra­tion lim­its).

“In light of the premium of­fer con­sid­er­a­tion, the favourable mar­ket re­ac­tion and the sound strate­gic ra­tio­nale, share­holder ap­proval of this ar­range­ment is war­ranted.”

The board of di­rec­tors of Tem­bec has unan­i­mously de­ter­mined that the ar­range­ment is in the best in­ter­ests of Tem­bec. The board has unan­i­mously ap­proved the ar­range­ment and rec­om­mends (with­out any ab­sten­tion) that Tem­bec share­hold­ers vote for the ar­range­ment res­o­lu­tion. In mak­ing its rec­om­men­da­tion, the board con­sid­ered a num­ber of fac­tors as de­scribed in the man­age­ment in­for­ma­tion cir­cu­lar dated June 13, 2017, un­der the head­ing the ar­range­ment — rea­sons for the rec­om­men­da­tion. Tem­bec share­hold­ers are en­cour­aged to re­view the cir­cu­lar care­fully be­fore sub­mit­ting the proxy form. The cir­cu­lar is avail­able un­der Tem­bec’s pro­file on SEDAR.

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