Ray­onier wins sup­port from Tem­bec share­hold­ers who op­posed deal

The Guardian (Charlottetown) - - BUSINESS -

MON­TREAL - Ray­onier Ad­vanced Ma­te­ri­als Inc. has raised its takeover of­fer for Tem­bec Inc. to win the sup­port of two of the forestry com­pany’s largest share­hold­ers who had threat­ened to block the friendly deal.

Ray­onier and Tem­bec (TSX:TMB) said Oak­tree Cap­i­tal Man­age­ment LP and Re­struc­tur­ing Cap­i­tal As­so­ciates LP have now agreed to sup­port the takeover.

The deal re­quires sup­port from a two-third ma­jor­ity vote at a share­holder meet­ing Thurs­day. Oak­tree and Re­struc­tur­ing Cap­i­tal, who had raised con­cerns the of­fer was too low, to­gether hold a 37 per cent stake in Tem­bec, enough to kill the deal. U.S.-based Ray­onier in­creased its of­fer to $4.75 or 0.2542 of a Ray­onier share per Tem­bec share late Sun­day night, sub­ject to a cap that lim­its the amount of cash to be paid to two-thirds of the deal.

Tem­bec shares had been trad­ing for more than Ray­onier’s ear­lier bid of $4.05 in cash or 0.2302 of a Ray­onier share, sub­ject to a limit of 63 per cent on the cash por­tion of the of­fer.

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