Resolute Forest Products Officially Commences Fibrek Take-Over Bid

As reported on November 28, holders of common shares of Fibrek will have the opportunity to elect to receive, for each share:

• Cash and Share Option: C$0.55 in cash and 0.0284 of a Resolute share
• Cash Only Option: C$1.00 in cash (subject to proration, as described in the Offer Documents) 
• Share Only Option: 0.0632 of a Resolute share (subject to proration, as described in the Offer Documents).

Based on Fibrek's most recent publicly disclosed number of 130,075,556 issued and outstanding Fibrek common shares, the maximum amount of cash consideration available under the Offer is C$71,541,556 and the maximum number of shares of Resolute common stock available to be issued under the offer is 3,694,146.

As of November 28, the date on which Resolute announced its intention to make the offer, the offer price represented a premium of approximately 39% over the closing price of Fibrek's Shares on that date, and a premium of approximately 31% over the volume weighted average trading price of the shares on the Toronto Stock Exchange for the 20 trading days ending on that date.

The acquisition of Fibrek will allow Resolute to expand its market pulp business and provide greater overall balance to its product offering. The offer provides an opportunity for Fibrek shareholders to elect immediate liquidity or choose to participate in the future of Resolute.

The offer will expire at 5:00 p.m. (EST) on January 20, 2012, unless it is extended or withdrawn by Resolute.

TAPPI
http://www.tappi.org/