MONTREAL, April 30, 2012 /CNW Telbec/ - Fibrek Inc. ("Fibrek" or the "Company") confirmed today that Mercer International Inc. ("Mercer") has announced that it has unilaterally terminated its support agreement with Fibrek with respect to its offer to acquire all of the common shares of Fibrek.
As stated in its directors' circular dated December 26, 2012, as supplemented by the notice of change to the directors' circular dated February 6, 2012, the Board of Directors believes that the offer by AbitibiBowater Inc. (doing business as Resolute Forest Products) ("Abitibi") significantly undervalues the common shares of Fibrek, which have, as at February 3, 2012, been valued at $1.25 to $1.45 by Canaccord Genuity Corp.
As a result of the termination of the Mercer support agreement, Mercer has instructed Computershare Investor Services Inc., the depository for the offer, to promptly return all common shares of Fibrek tendered thereunder.
Fibrek (TSX: FBK) is a leading producer and marketer of high-quality virgin and recycled kraft pulp. The company operates three mills located in Saint-Félicien, Québec, Fairmont, West Virginia, and in Menominee, Michigan with a combined annual production capacity of 760,000 tonnes. Fibrek has approximately 500 employees. The Saint-Félicien mill provides northern bleached softwood kraft pulp (product known as NBSK pulp) to various sectors of the paper industry mainly in Canada, the United States and Europe, for use in the production of specialized products. The Fairmont and Menominee mills manufacture air-dried recycled bleached kraft pulp (product known as RBK pulp) and primarily supply manufacturers of fine uncoated paper, tissue paper for commercial and industrial uses, and coated paper in the United States.
This press release contains "forward-looking statements" within the meaning of applicable securities laws. These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical facts and include statements concerning Fibrek's future outlook, business strategy, plans, expectations, results or actions, or the assumptions underlying any of the foregoing. Forward-looking statements can generally be identified by words such as "may", "should", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook" and similar expressions. These statements are based on information currently available to Fibrek's management and on the current assumptions, intentions, plans, expectations and estimates of Management regarding Fibrek's future growth, results of operations, performance, business prospects and opportunities and ability to attract and retain customers as well as the economic environment in which it operates. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which could cause actual results of Fibrek to differ materially from the conclusion, forecast or projection stated in such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: actions taken by Abitibi, actions taken by shareholders of Fibrek in respect of Abitibi's unsolicited offer, the possible effect of Abitibi's unsolicited offer on Fibrek's business, the award of a power purchase agreement to Fibrek under the new Québec Government cogeneration program, general economic conditions, pulp prices and sales volume, exchange rate fluctuations, cost and supply of wood fibre, wastepaper and other raw materials, pension contributions, competitive markets, dependence upon key customers, increased production capacity, equipment failure, disruptions of production, capital requirements and other factors referenced in Fibrek's continuous disclosure filings which are available on SEDAR at www.sedar.com. Readers should not place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this press release and, except as required by applicable securities laws, Fibrek assumes no obligation to update or revise them to reflect new events or circumstances.
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Vice President and Chief Financial Officer
NATIONAL Public Relations
Vice President, Change Management and Supply Chain