Tem­bec share­hold­ers ap­prove takeover

The Guardian (Charlottetown) - - BUSINESS -

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.

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