MONTREAL--(BUSINESS WIRE)--Dec. 10, 1997--(ME:TBC.A.) (TSE:TBC.A.) (ME:TBC.DBU.) (TSE:TBC.DBU.) Tembec Inc. announced today that it has signed a memorandum of understanding with Repap Enterprises Inc., wherein it expects to enter into a conditional purchase agreement on or before January 9, 1998, with respect to the Atholville pulp mill, New-Brunswick. Closing of the proposed transaction is scheduled to take place in early 1998 with required third party consents to be obtained on or prior to December 31, 1997.
Tembec Inc. and companies of the Birla Group, an Asian fibre and chemical conglomerate, are entering into a joint venture agreement for purposes of acquiring the mill from Repap. The projected purchase would be for nominal consideration.
Tembec is a major Canadian forest products company principally involved in the production of specialty market pulp, lumber, OSB, paperboard and newsprint.
Tembec's Class A shares and 6.5 percent convertible unsecured subordinated U.S. dollar denominated debentures are listed on The Toronto Stock Exchange and the Montreal Exchange respectively under the symbol TBC.A and TBC.DBU. |
