TICKER SYMBOL UFS (NYSE, TSX)
MONTREAL, March 11 /CNW Telbec/ - Domtar Corporation announced today that its Board of Directors has approved a proposal to effect a reverse stock split of the Company's outstanding common stock (NYSE/TSX: UFS) and a corresponding reverse split of the outstanding exchangeable shares issued by the Company's indirect subsidiary, Domtar (Canada) Paper Inc. (TSX: UFX).
The proposal calls to authorize the Board to effect, at its discretion, a reverse stock split by a ratio of 1-for-12, 1-for-15 or 1-for-18 shares. The proposal is outlined in the Company's preliminary proxy statement filed today with the Securities and Exchange Commission and Canadian securities regulators. It will be submitted to a vote by stockholders at the Company's annual meeting on May 29, 2009. The reverse stock split is also subject to certain customary regulatory approvals.
Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publication as well as converting and specialty papers including recognized brands such as Cougar(R), Lynx(R) Opaque, Husky(R) Offset, First Choice(R) and Domtar EarthChoice(R) Office Paper, part of a family of environmentally and socially responsible papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. Domtar also produces lumber and other specialty and industrial wood products. The Company employs nearly 11,000 people. To learn more, visit www.domtar.com.
All statements in this press release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Forward-Looking Statements" and "Risk Factors" of the Form 10-K filed with the SEC. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.