Tembec Completes Additional Sale of Land in British Columbia
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Tembec, Montreal, Que., Canada, this week announced the closing of the sale of approximately 31,800 hectares of land located within the Regional District of East Kootenay, B.C., Canada, to Jemi Fibre Corp. The sale was previously announced on April 25 of this year.
Total consideration for the transaction was $21 million, including a deferred amount of $2 million payable by no later than June 24, 2021. Under certain circumstances, the repayment of the deferred amount may be accelerated. The transaction is the second part of a two phase sale. The first phase of the sale closed on June 25 of this year. As a result of the most recent sale of land, the company will record a gain of $15 million in its September 2014 financial results.
The transaction is part of the BC Land Sale Initiative. The company has set an objective of realizing up to $70 million in land sales by December of this year. To date, it has realized a total of $60 million. The company will provide regular updates on the BC Land Sale Initiative as it progresses.
Tembec is a manufacturer of forest products—lumber, pulp, paper, and specialty cellulose. Its principal operations are in Canada and France. The company has some 3,500 employees and annual sales of approximately $1.6 billion.
