Montreal, Quebec, Canada, 25 September 2009 – Tembec today concluded the sale of its 50% equity interest in Temrex Forest Products LP to subsidiaries of Société générale de financement du Québec (SGF) for CAD 11.6 million in cash. Temrex has been operated as a sawmilling joint venture with the SGF in Quebec’s Gaspé region since 2002.
Produits Forestiers Saint-Alphonse Inc. (PFSA) purchased Tembec’s 32,800,000 units in Temrex and SGF Rexfor Inc. (Rexfor) purchased Tembec’s 50 common shares in Gestion PFT Inc., the general partner of Temrex. PFSA and Rexfor are subsidiaries of SGF. The purchase price is subject to a post-closing downwards adjustment of not more than CAD 500,000.
The sale of Tembec’s interest is part of the company’s initiatives to generate approximately CAD 100 million of incremental liquidity. Including this sale, approximately CAD 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 CAD 6 million in its September 2009 quarterly financial statements.
Tembec is a large, diversified and integrated forest products company and a 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 at www.tembec.com