TEMISCAMING, QC, Oct. 11 /CNW Telbec/ - Tembec today announced that it
has completed the sale of approximately 345 hectares of land located in and
around Fernie, British Columbia to Ridgemont Holdings Ltd. Net proceeds for
the transaction will be in excess of $16 million.
As has been the case with other BC lands of a "higher and better end use"
character that Tembec has sold in the past year, the sale of the Fernie lands
will have no impact on the Company's ability to provide fibre to its sawmill
The sale of these lands is consistent with the recovery plan that was
announced last year by Tembec President and CEO, James Lopez, and is also part
of the Company's efforts to improve liquidity by roughly $100 million through
a range of actions. "While margin improvement at all sites was the primary
focus of this plan, it also included an initiative to monetize non-core
assets," said John Valley, Executive Vice President of Business Development
and Corporate Affairs. "This transaction meets the criteria of this
initiative, with lands possessing high economic and development value being
monetized. We believe it is a good transaction for both parties and for the
Reto Barrington, speaking on behalf of Ridgemont Holdings, said "This
land holding represents a wonderful opportunity for us. At the same time, we
recognize that stewardship considerations require a delicate balancing of
current and historical recreational uses. We are mindful of the privilege of
owning such a unique parcel of land, the broader interests of the community
and the need for protection of the natural environment."
Tembec is a large, diversified and integrated forest products company.
With operations principally located in North America and in France, the
Company employs approximately 9,000 people. Tembec's common shares are listed
on the Toronto Stock Exchange under the symbol TBC. Additional information on
Tembec is available on its website at www.tembec.com
For further information:
For further information: John Valley, Executive Vice President, Business
Development and Corporate Affairs, (416) 775-2819; Tracy Dottori, Corporate
Manager, Organizational Development, (819) 627-4591