Arbec Forest Products Authorize a Going Private Transaction
Saint-Leonard, Quebec, Canada, 26 May 2006 -- /PRNewswire/ -- On 01 March 2006, Jolina Capital Inc. launched an offer to purchase all the company's issued and outstanding subordinate voting shares, including the subordinate voting shares resulting from the conversion of the multiple voting shares, options and other rights, at CAD 0.35 per share.
On 07 April 2006, Jolina announced the successful completion of its offer. With a view to acquire 90% of outstanding shares, except those previously held by Jolina, Jolina extended its offer for a first time until 24 April 2006, for a second time until 10 May 2006, and for a third time until 26 May 2006. As of 26 May 2006, Jolina announced that it controlled a sufficient number of shares to proceed with a compulsory acquisition.
On 10 May 2006, Jolina had announced that, given it did not control enough shares to proceed with a compulsory acquisition, it intended to proceed with a going private transaction by way of a consolidation. In that respect, a special and annual meeting of the shareholders of Arbec, to be held on 27 June 2006, was called by the company. However, given that Jolina has now acquired a sufficient number of shares to proceed with a compulsory acquisition, the company has announced that such meeting will not be held.
Upon completion of the compulsory acquisition by Jolina, the company intends to de-list its shares from the Toronto Stock Exchange and to apply to securities regulatory authorities to cease to be a reporting issuer.
Arbec Forest Products Inc. manufactures softwood lumber and owns a pulp mill now rented by virtue of a long-term agreement. The company carries on business through mills located in Port-Cartier and in the Peribonka area. The company's subordinate voting shares are listed on the Toronto Stock Exchange under the trading symbol ABR.SV.A.
Source: ARBEC FOREST PRODUCTS INC.