Fibrek Inc to amalgamate into new corporation owned by Resolute Forest Products

MONTREAL — Resolute Forest Products Inc. (TSX: RFP) says Fibrek Inc. (TSX: FBK), the pulp and paper producer it recently won control over, has agreed to amalgamate into a new corporation owned by Resolute.
The Montreal-based forestry company said Wednesday its subsidiary RFP Acquisition Inc. and Fibrek have reached an agreement on the plan following a bruising takeover battle with the pulp producer, whose preferred bidder was Mercer International (TSX:MRI).

Resolute has already bought up 74.6 per cent of Fibrek shares and is offering remaining Fibrek shareholders either cash or shares or a combination of both to tender their shares.
Under terms of the arrangement, Fibrek and RFP Acquisition have agreed to apply for an interim order of the Superior Court of Quebec to hold a special meeting of Fibrek shareholders to vote on the plan.
Resolute says independent members of Fibrek’s board have received an opinion from their financial adviser that the offer of $1 per share or 0.06 of a Resolute share, or the combination of 55 cents and 0.03 of a share is fair.
It is the same offer Resolute gave to other Fibrek shareholders as part of its takeover bid.
The special meeting is expected to be scheduled for July 23.
Five top-ranking executives from Fibrek have departed with more $8.2 million in compensation and retirement payouts.
Resolute, formerly known as AbitibiBowater Inc., produces newsprint, commercial printing papers, market pulp and wood products at 18 company owned or operated pulp and paper mills and 24 wood products mills in Canada, the United States and South Korea.