NEW YORK, Jan. 17 /CNW/ -- Mercer International Inc. (Nasdaq: MERC, TSX:
MRI.U) ("Mercer" or the "Company") provided the following response to recent
press releases by or on behalf of Mass Financial:
Mercer's board has always maintained an open dialogue with all
shareholders. The Company has a strong and independent board, with six of its
seven directors being independent. The Company's independent directors are
highly experienced and include persons with broad and extensive experience in
the capital markets and forest products segment, including as former CEOs of
public forest products companies, a former CEO of a leading Canadian
investment bank, a fund manager and former accounting professionals. Further,
the Company's CEO and independent directors all have meaningful share
positions and their interests are aligned with those of other shareholders.
The Company and its board are fully committed to advancing its business
and to its strategy of focusing on the production and sale of NBSK market
pulp, operating world-class production facilities and constantly focusing on
increasing efficiencies and reducing costs to drive value. The Company
believes that it has the right strategic plan and that it is well positioned
to achieve these goals and deliver superior shareholder value over the medium
and long-term. Additionally, the Company's board has and is always prepared to
consider bona fide value-enhancing proposals.
The Company disagrees with the statements in the Mass press releases,
believes many to be inaccurate and that they merely reiterate a December 10,
2007 letter from Mass. The Company's independent directors met and duly
considered such letter and replied thereto by letter dated December 18, 2007.
Copies of the Company's response letter and the Mass letter are included in
the Company's Form 8-K dated December 18, 2007 and available at www.sec.gov
and at www.mercerint.com.
Mass is a Barbados company headquartered in China, traded on the "pink
sheets" in the United States, not listed for trading on any exchange and not
subject to the reporting requirements or securities laws of the United States.
Mass was spun off from its parent, KHD Humboldt Wedag International Ltd.
("KHD") (NYSE: KHD) (formerly called MFC Bancorp Ltd.) in 2006. Michael J.
Smith is disclosed as the Chairman, CEO and a director of Mass and a director,
Chairman and former CEO of KHD.
Mass claims to be the owner of 700,000 shares of the Company's stock. The
Company believes that Mass acquired these shares from a KHD affiliate some
time in 2007. These shares were issued as restricted stock by the Company to
the KHD affiliate in October 2006 to purchase such KHD affiliate's 7% minority
interest in the Stendal pulp mill.
Mercer International Inc. is a global pulp manufacturing company. To
obtain further information on the company, please visit its web site at
The preceding includes forward-looking statements which involve known and
unknown risks and uncertainties which may cause the Company's actual results
in future periods to differ materially from forecasted results. Among those
factors which could cause actual results to differ materially are the
following: market conditions, competition and other risk factors listed from
time to time in the Company's SEC reports.
For further information:
For further information: Jimmy S.H. Lee, Chairman & President, or
Kenneth A. Shields, Vice Chairman, Lead Director, +1-604-684-1099; Investors:
Eric Boyriven, Alexandra Tramont or Media: Jordana Miller, all of Financial
Dynamics, +1-212-850-5600 Web Site: http://www.mercerint.com