PaperAge Magazine

Institutional Shareholder Services Recommends Acquisition of Tembec by Rayonier Advanced Materials


July 17, 2017 - Tembec Inc. (TSX: TMB) ("Tembec") announced [on July 14] that Institutional Shareholder Services ("ISS") has recommended that shareholders of Tembec vote FOR the proposed plan of arrangement (the "Arrangement") involving the acquisition by Rayonier Advanced Materials Inc. ("Rayonier AM") of all of the outstanding shares of Tembec (the "Tembec Shares").

In connection with this recommendation, ISS noted that: "The proposed premium offer consideration provides shareholders with flexibility to participate in the growth opportunities associated with the combined business of increased size, scale and liquidity and/or to receive the consideration in the form of cash that provides immediate liquidity (subject to proration limits).

In light of the premium offer consideration, the favourable market reaction and the sound strategic rationale, shareholder approval of this arrangement is warranted."

The board of directors of Tembec (the "Board") has unanimously determined that the Arrangement is in the best interests of Tembec. The Board has unanimously approved the Arrangement and recommends (without any abstention) that Tembec shareholders vote FOR the Arrangement Resolution.

In making its recommendation, the Board considered a number of factors as described in the Management Information Circular dated June 13, 2017 ("Circular") under the heading "The Arrangement – Reasons for the Recommendation". Tembec shareholders are encouraged to review the Circular carefully before submitting the proxy form. The Circular is available under Tembec's profile on SEDAR at

SOURCE: Tembec

Go to related story:
» Rayonier Advanced Materials to Acquire Tembec for $807 Million Including Debt - May 25, 2017