Mercer Increases Offer for Fibrek to C$1.40 per Share
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Mercer International Inc., New York, N.Y., USA, this week announced that it has increased its offer to acquire all of the issued and outstanding common shares of Fibrek to C$1.40 per Fibrek share. Pursuant to the enhanced offer, Mercer is offering to acquire all of the outstanding Fibrek shares for consideration per Fibrek share, at the election of each holder, in one of the following forms:
- C$1.40 in cash per Fibrek share (subject to proration)
- 0.1659 of a share of Mercer's common stock (a Mercer Share) per Fibrek share (subject to proration)
- C$0.64 in cash plus 0.0903 of a Mercer Share per Fibrek share.
Under the enhanced offer, the aggregate cash consideration has been increased to approximately C$83.0 million, while the maximum number of Mercer shares available to be issued under the offer remains 11,741,496 Mercer shares.
Earlier this week, Mercer had extended the expiry date for its offer to April 16. The company previously entered into voting support agreements with its two largest institutional shareholders and its chairman and CEO, who collectively own approximately 44% of the outstanding Mercer Shares, who have agreed to vote their Mercer Shares in favor of the shareholder approval.
Mercer also announced that it has received a favorable decision from the federal Minister of Industry following his review of Mercer's proposed acquisition of Fibrek under the Investment Canada Act, and also has been granted early termination of the statutory waiting period for U.S. competition and antitrust review by the U.S. Federal Trade Commission.
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