#CBC: « Sweetened bid for Tembec wins support from shareholders who opposed deal – Business »

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U.S.-based Rayonier increased its offer late Sunday

The Canadian Press
Posted: Jul 24, 2017 2:36 PM ET
Last Updated: Jul 24, 2017 2:36 PM ET

Rayonier Advanced Materials Inc. has raised its takeover offer for Tembec Inc. to win the support of two of the forestry company’s largest shareholders who had threatened to block the friendly deal.

Rayonier and Tembec said Oaktree Capital Management LP and Restructuring Capital Associates LP have now agreed to support the takeover.

The deal requires support from a two-third majority vote at a shareholder meeting Thursday.

Oaktree and Restructuring Capital, who had raised concerns the offer was too low, together hold a 37 per cent stake in Tembec, enough to kill the deal.

U.S.-based Rayonier increased its offer to $4.75 or 0.2542 of a Rayonier share per Tembec share late Sunday night, subject to a cap that limits the amount of cash to be paid to two-thirds of the deal.

Tembec shares had been trading for more than Rayonier’s earlier bid of $4.05 in cash or 0.2302 of a Rayonier share, subject to a limit of 63 per cent on the cash portion of the offer.

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Note: « Previously Published on: 24 July 2017 | 6:36 pm, as ‘Sweetened bid for Tembec wins support from shareholders who opposed deal – Business’ on CBC RADIO-CANADA. Here is a source link for the Article’s Image(s) and Content ».

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