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Press Room
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Merger of Weyerhaeuser fine-paper business and Domtar
Montréal, August 23, 2006 — Société générale de financement du Québec (SGF) welcomes with interest the announcement made by Domtar earlier today.
“In the coming days, SGF will learn more details about the transaction and will examine the short-, medium-, and long-term impacts,” said SGF Chairman, President and General Manager Pierre Shedleur.
SGF holds 18,170,249 Domtar common shares, or 7.8% of the company’s outstanding shares.
SGF’s interest in Domtar from 1985 to today
In 1981, SGF made an initial investment of $145.8 million in Domtar.
In 1985, SGF held 29.80% of Domtar’s capital stock, through the company DOFOR.
On December 11, 2002, SGF announced it was starting a process of disinvesting in Domtar, selling half of its interest — or 18.15 million shares — in the company. The price of each share at the time was $16.50, with a subscription right to purchase Domtar shares for $17.55 per share at any time within a year after the transaction closing date. Because the subscription right was not exercised due to unfavourable market conditions, SGF did not attain its objective of totally liquidating its interest and still held 8% of Domtar’s shares. If the subscription right had been completely exercised, SGF would not hold any interest in Domtar today.
There has been only a minimal change in SGF’s holding since 2002, mainly as a result of market events.
At August 23, 2006, SGF holds 7.8% of Domtar’s shares and is not represented on the company’s Board of Directors.
Société générale de financement du Québec (SGF) is an industrial and financial holding company. Its mission is to carry out economic development projects, especially in the industrial sector, in cooperation with partners and in accordance with accepted requirements for profitability and the Government of Québec’s economic development policy.
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Source:
Marie-Claude Lemieux
Senior Communications and Media Relations Advisor
Société générale de financement du Québec
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