MONTREAL, Sept. 25 /CNW Telbec/ -- Tembec today concluded the sale of its 50% equity interest in Temrex Forest Products LP ("Temrex") to subsidiaries of Société générale de financement du Québec ("SGF") for $11.6 million in cash. Temrex has been operated as a sawmilling joint venture with the SGF in Quebec's Gaspé region since 2002.
Produits Forestiers Saint-Alphonse Inc. ("PFSA") purchased Tembec's 32,800,000 units in Temrex and SGF Rexfor Inc. ("Rexfor") purchased Tembec's 50 common shares in Gestion PFT Inc., the general partner of Temrex. PFSA and Rexfor are subsidiaries of SGF. The purchase price is subject to a post-closing downwards adjustment of not more than $500,000.
The sale of Tembec's interest is part of the Company's initiatives to generate approximately $100 million of incremental liquidity. Including this sale, approximately $26 million will have been achieved since the initiatives were first announced in April 2009.
As a result of the sale, Tembec will record a gain of approximately $6 million in its September 2009 quarterly financial statements.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "will", "anticipate", "estimate", "expect" and "project" or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.