HONG KONG, Jan. 16 /CNW/ -- The Mercer Shareholders Committee
("Committee") announces that it has been established today by shareholders of
Mercer International Inc. ("Mercer") (Nasdaq: MERC, TSX: MUI.U)
The mandate of the Committee will be to unlock the value of the Mercer's
common shares by requesting drastic corporate changes within Mercer, and to
either have the company sold or create a joint venture with a strategic
investor to realize the highest value for the shareholders.
Based on published reports, several investment bankers believe that
Mercer is worth between US$11.50 and US$13.50 a share.
Mercer's present management and Board of Directors have little or no
investment in the company, and therefore no real incentive to achieve maximum
shareholder value. The Committee is currently establishing a website that will
be operational shortly, and it will show both the cost base and selling
patterns of these shareholdings.
Mercer's mill at Stendal, Germany has a 29.42% minority shareholder that
is a private equity firm which has stated that it just wants to sell its
shares. This mill produces approximately 45% of Mercer's entire production,
and Mercer's Chairman stated that the company does not wish to purchase this
shareholding. We believe this position should be acquired, and some of our
members are willing to discuss financing the project to create greater overall
We have requested that Mercer hire an independent, qualified investment
banking firm to complete this action (not RBC Dominion Securities Inc., as we
believe they are conflicted), and if they choose not to do it, we will.
In that regard, we have started the process and are now interviewing
investment bankers to represent the Committee and shareholders, and intend to
hold an auction for Mercer with or without the cooperation of the Board of
Directors and management. We sincerely hope this is not necessary and that
the Board will do what is in the best interests of shareholders, however, we
will keep you informed.
With pulp now selling at a 12 year high, it is time for action.
Our Committee will operate in an open and transparent manner, and issue
press releases to update all Mercer shareholders and stakeholders on a
Today, we have asked Mercer to establish a link to our website in order
to keep the shareholders currently updated.
We invite all concerned shareholders to contact our Committee to receive
updates and further information. We must make this Board of Directors a
proper guardian of our shareholders' capital.
Mercer International Inc. is the world's largest publicly traded NBSK
pulp manufacturing company in the world. To obtain further information on the
company, please visit its website at http://www.mercerint.com and review its
8-K of December 18, 2007.
About The Mercer Shareholders Committee
The Committee has been established and funded exclusively by Mercer
Contact information: Jennifer Wu-Scharsig
Spokesperson of the Mercer Shareholders Committee
Room 601, Chung Nam Building
No. 1 Lockhart
Wanchai, Hong Kong
Phone: +852 2865 4828
Fax: +852 2154 1789
((*)) This logo is a registered Trade Mark of Mercer International Inc.
For further information:
For further information: Jennifer Wu-Scharsig, Spokesperson of the
Mercer Shareholders Committee, +852 2865 4828, fax, +852 2154 1789,
email@example.com Web Site: http://www.mercerint.com