Tembec takeover under threat after shareholders oppose deal

MONTREAL — The takeover of forestry company Tembec appeared under threat after the company’s second-largest shareholder said it will vote against the friendly offer by Rayonier Advanced Materials. Restructuring Capital Associates (RCA), which owns 17.1 per cent of Tembec shares, said Tuesday it will join Oaktree Capital Management in opposing the transaction at the vote July 27. Together the company’s two largest shareholders control 37 per cent of Tembec (TSX:TMB) shares. The takeover requires support by a two-thirds majority vote of shareholders. RCA said it is supportive of Tembec management and board’s turn-around efforts and the proposed merger with Rayonier Advanced Materials. However, it said the Florida company must respond more appropriately to Oaktree’s complaints which it rejected as “misleading” on Monday.