UPDATE: Resolute Announces Take-Up of 46.8% of Fibrek Shares and Extension of Offer to April 23; Fibrek Down 8%

By MT Newswires,  April 12, 2012, 10:22:23 AM EDT

AbitibiBowater Inc., doing business as Resolute Forest Products (ABH.TO), today announced that all applicable conditions to its offer for Fibrek Inc. (FBK.TO) have been satisfied and that it has taken up and accepted for payment the 60,831,859 shares deposited as of 11:59 p.m. on April 11. The tendered shares represent approximately 46.8% of the currently outstanding Fibrek shares. As aggregate consideration for the shares, Resolute will distribute approximately 1.7 million newly-issued shares of its common stock and C$33.5 million in cash through RFP Acquisition Inc., a wholly-owned subsidiary.

The company also announced that Quebec has issued an order to cease trade, effective immediately, Fibrek's second shareholder rights plan, which its board adopted on April 11.

In addition, in order to allow additional Fibrek shareholders to participate, the company announced that it has extended to 5 p.m. on April 23 the expiry time for its offer.

Fibrek shares are down 8%, to $1.06. More than 530,000 shares have changed hands.

ABH shares are down 0.6%, to $13.38.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

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