MONTREAL, Sept. 3 /CNW Telbec/ - Tembec today concluded an agreement to
sell its 50% equity interest in Temrex Forest Products LP and its general
partner Gestion PFT Inc., (collectively "Temrex") to Société générale de
financement du Québec (the "SGF") for $12 million. The sale is subject to
certain conditions. The final proceeds are subject to adjustment for normal
working capital and certain other items. Closing of the transaction is
anticipated to occur by the end of September. Temrex has been operated as a
sawmilling joint venture with the SGF in Quebec's Gaspé region since 2002.
The sale of Tembec's interest is part of the Company's initiatives to
generate approximately $100 million of incremental liquidity. Including this
sale, approximately $26 million will have been achieved since the initiatives
were first announced in April 2009.
As a result of the sale, Tembec will record a gain of approximately $6
million in its September 2009 quarterly financial statements.
Tembec is a large, diversified and integrated forest products company
which stands as the global leader in sustainable forest management practices.
The Company's principal operations are located in Canada and France. Tembec's
common shares are listed on the Toronto Stock Exchange under the symbol TMB
and warrants under TMB.WT. Additional information on Tembec is available on
its website at www.tembec.com.
This press release includes "forward-looking statements" within the
meaning of securities laws. Such statements relate to the Company's or
management's objectives, projections, estimates, expectations or predictions
of the future and can be identified by words such as "will", "anticipate",
"estimate", "expect" and "project" or variations of such words. These
statements are based on certain assumptions and analyses made by the Company
in light of its experience and its perception of future developments. Such
statements are subject to a number of risks and uncertainties, including, but
not limited to, changes in foreign exchange rates, product selling prices, raw
material and operating costs and other factors identified in our periodic
filings with securities regulatory authorities. Many of these risks are beyond
the control of the Company and, therefore, may cause actual actions or results
to materially differ from those expressed or implied herein. The Company
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
For further information:
For further information: John Valley, Executive Vice President, Business
Development and Corporate Affairs, (416) 775-2819, firstname.lastname@example.org;
Michel J. Dumas, Executive Vice President, Finance and Chief Financial
Officer, (819) 627-4268, email@example.com