Tembec takeover underneath hazard after dual largest shareholders conflict deal
The takeover of forestry association Tembec could be in danger after a company’s second-largest shareholder pronounced Tuesday it will opinion opposite a $807 million US accessible offer by Rayonier Advanced Materials.
Restructuring Capital Associates (RCA), that owns 17.1 per cent of Tembec’s stock, pronounced it will join Oaktree Capital Management in hostile a transaction during a opinion Jul 27.
Together, a company’s dual largest shareholders control 37 per cent of Tembec shares.
The takeover requires support by a two-thirds infancy opinion of shareholders.
RCA pronounced it supports a due partnership with Rayonier Advanced Materials. But it combined that a Florida association contingency respond some-more reasonably to several complaints from Oaktree including that shareholders aren’t receiving a satisfactory cost and that Rayonier Advanced Materials can pacify a offer. Rayonier Advanced Materials discharged such concerns Monday as “misleading.”
“The vital consequence of this singular multiple can urge profitability exponentially and Oaktree creates a constrained box that Rayonier can and should urge a offer,” RCA owner James Bennett pronounced in a matter Tuesday.
A mouthpiece for Rayonier Advanced Materials and Tembec pronounced a companies wouldn’t criticism on any sold shareholder’s voting intentions before subsequent week’s vote.
On Monday, it pronounced it stood by a offer of $4.05 in money or 0.2302 of a share in Rayonier Advanced Materials, theme to a top on a sum volume of money and shares that will be issued.
The accessible offer is 37 per cent above where Tembec’s shares traded before a proposal, though it is reduction than a $4.26 the shares sealed at on a Toronto Stock Exchange on Tuesday.
Article source: http://www.cbc.ca/news/business/tembec-takover-shareholders-1.4210715?cmp=rss