Fibrek Inc. announced today that a proposal has emerged from its strategic alternatives review process, which was initiated by Fibrek’s Board following the unsolicited insider bid made by AbitibiBowater Inc. (carrying on business as Resolute Forest Products) on December 15, 2011.
The Board of Directors and Management are currently in negotiations with a number of third parties in response to the Insider Bid.
While it is impossible at this stage to predict whether any other competing offers will emerge, the Board expects to receive alternative proposals from such third parties.
Third parties have until 5:00 p.m. today, February 3, 2012 to submit their proposals.
Fibrek will update the market as appropriate as this process continues, but there can be no assurance that a transaction will take place.
As previously disclosed, Fibrek is currently in proceedings before the Bureau de révision et décision (Québec) following the application made by Abitibi and one of its affiliate for an order cease trading Fibrek’s shareholder rights plan. Fibrek is issuing this press release in response to a request made by the Bureau during the course of the proceedings to provide an update regarding any proposals having emerged to date.
The Board has determined that disclosure with respect to any negotiation, and the possible terms of, any transactions or proposals of the type referred to in the preceding paragraphs might jeopardize any discussions or negotiations that Fibrek may conduct.
The Board’s ongoing strategic alternatives review process continues and Fibrek will review the terms of any proposals received. Fibrek will remain in compliance with its obligations with respect to timely disclosure of information and, as applicable, disclose the terms of any transaction or proposal in the event that an agreement relating thereto has been reached.
Source: Fibrek
