Tembec shareholders approve takeover
MONTREAL - Shareholders in Quebec forestry firm Tembec have overwhelmingly endorsed a friendly takeover offer by Rayonier Advanced Materials, a chemical products company based in Florida.
About 95 per cent of shareholders voted in favour of the deal, valued at C$1.1 billion - well above the twothirds support required. The agreement, which is subject to regulatory approvals, is expected to close by the end of year.
The transaction announced in May was at risk of being rejected until Rayonier Advanced Materials raised its offer in response to threats from Tembec’s (TSX:TMB) two largest shareholders that they would vote against it. Oaktree Capital Management LP and Restructuring Capital Associates LP had raised concerns the offer was too low, but agreed to support the deal after the bid was raised. Rayonier Advanced Materials agreed to pay C$4.75 or 0.2542 of a Rayonier share per Tembec share, subject to a cap that limits the amount of cash to be paid to twothirds of the deal. The value of the transaction includes debt.
An earlier bid was for C$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.