Pope& Talbot sells three pulp mills to Sinar Mas Group for $225 million

Source: Exec Digital Canada

Date :1/11/2008 5:35:46 AM

Pope & Talbot, Inc. said Friday that it has agreed to sell three pulp mills to one or more affiliates within the Sinar Mas Group, valuing the transaction at about $225 million.

The three pulp mills, located in Nanaimo, British Columbia, Mackenzie, British Columbia and Halsey, Oregon are producers of high-quality softwood pulp.

Harold Stanton, Pope & Talbot President and CEO said: "…This is an important milestone in maximizing value for our stakeholders."

Approval

The sale is subject to approval by the US Bankruptcy Court and the Canadian Court.

The deal, which includes the assumption of certain liabilities and $100 million of working capital proceeds that is not subject to the sale, to be realized after closing, also requires regulatory approvals in Canada and the United States.

Pope& Talbot said it expects to receive approvals and close the transaction in the first quarter of 2008.

January 11, 2008