According to a report Tuesday (May 24) by The Powell River Peak, Powell River, B.C., Canada, Catalyst Paper (Richmond, Canada) has received an expression of intent for its acquisition from an international corporation with headquarters in India.

If accepted, the acquisition would give Kejriwal Group International (KGI) majority control of Catalyst.

The proposed acquisition involves Catalyst's four largest shareholders, including Mudrick Capital Management, Cyrus Capital Partners, Oaktree Capital Management, and Stonehill Capital Management. Mudrick, Cyrus, Oaktree, and Stonehill currently control 79% of Catalyst shares.

The expression of intent details a transaction in which KGI acquires majority shares at $6 per share. The acquisition would also involve a new, five-year $260.5 million U.S. term loan and KGI would commit to investments of $25 million in Catalyst and $35 million in the new term loans.

A Catalyst press release on Monday, May 23, announced the intended acquisition and stated that "the board of directors has indicated it is encouraged by KGI's proposal, which could provide Catalyst with a significant amount of capital, which further enhances and accelerates Catalyst's planned growth initiatives."

Catalyst was reported to first be made aware of the proposed deal on May 16, when it learned that schedule 13D filings had been made with the Securities and Exchange Commission in the U.S.

Schedule 13Ds may be a precursor to takeovers, company breakups, and other events that affect a change in control of the company.