Fibrek and Mercer to Seek Permission to Appeal to the Supreme Court of Canada
March 28, 2012 (Press Release) - Fibrek Inc. ("Fibrek" or the "Corporation") announced today that, together with Mercer International Inc. ("Mercer"), it will seek permission from the Supreme Court of Canada to appeal the Québec Court of Appeal's decision to maintain the cease trade order of the proposed private placement (the "Private Placement") of 32,320,000 special warrants to purchase common shares of Fibrek to Mercer.
As previously announced, 46.4% of Fibrek shares are subject to lock-up agreements in favour of AbitibiBowater Inc. (doing business as Resolute Forest Products) ("Abitibi"). On March 20, 2012, Abitibi announced that approximately 46.4% of the outstanding Fibrek shares had been deposited to the Abitibi unsolicited insider bid. Fibrek reminds shareholders that the Abitbi unsolicited insider bid is subject to a 50.01% minimum tender condition. Accordingly, shareholders are urged not to take any action with respect to their Fibrek shares until all available proceedings before the courts have been exhausted in order to benefit from the superior $1.30 Mercer offer.
The Mercer offer at $1.30 was launched on February 29, 2012 and will remain open until 5:00 p.m. (Eastern time) on April 6, 2012. Mercer has the obligation to extend the Mercer offer to a date that is at least 3 business days later than either (i) any extended expiry date of the Abitibi unsolicited insider bid, or (ii) the date at which the lock-up agreements in favour of Abitibi terminate in accordance with their terms.
The Board of Directors continues to unanimously recommend that shareholders ACCEPT and TENDER their common shares to Mercer's $1.30 offer.
The Board also recommends that shareholders REJECT and NOT TENDER their common shares to Abitibi's $1.00 unsolicited insider bid. If shareholders have tendered their shares to the Abitibi insider bid, the Board recommends that they WITHDRAW them immediately.
The Support Agreement and the Directors' Circular in respect of the Mercer offer have been filed and are available at www.sedar.com under the company's profile.