Displaying items by tag: AbitibiBowater

Compared to its paper-making peers, Resolute Forest Products Inc. ( RFP ) is still the smallest and the cheapest stock price for a paper company, and a favorite of Guru Prem Watsa , a mega shareholder. 

Headquartered in Montreal, Canada, Resolute Forest Products Inc. calls itself a global leader in the forest products industry including newsprint, commercial printing specialty papers, market pulp and wood products. The company owns or operates over 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and sells its products in 90 countries. 

Billionaire Prem Watsa , founder of Fairfax Financial Holdings, has earned the prestigious moniker of "the Warren Buffett of Canada." Watsa owns 24,776,519 shares of Resolute Forest Products Inc. ( RFP ), with a portfolio weighting of 13.1%. Resolute Forest shares are traded at around $16.07 with a P/E ratio of 55.9 and P/S ratio of 0.4. 

His holding history: 
With a market cap of $1.52 billion, Montreal's Resolute Forest Products is especially geared to documenting sustainability practices. The company's 2012 Annual Report describes a company still emerging from credit protection. 

Comment Dites Vous AbitibiBowater? 
Filing for creditor protections in the U.S and Canada in 2009, with a debt of approximately USD6 billion, the company, then named "AbitibiBowater," won court approval to finance restructuring. The company emerged from creditor protection in December 2010, and changed its operating name from AbitibiBowater to Resolute Forest Products about a year later. 
Resolute Forest Products generates revenue per category, as follows: newsprint for 36%, specialty papers for 25%, market pulp for 18%, wood products for 11% and coated papers for 10%. These products combined generated 2012 total sales at $4.5 billion, with an adjusted EBITDA of $3.86 billion. Net cash provided by operating activities is listed at $2.66 billion. 

Comparing Paper and Pulp Peers 
Still the smallest company and the cheapest stock price, Montreal's Resolute Forest Products has a market cap of $1.52 billion. International Paper ( IP) , with a market cap of $20.48 billion, makes industrial packaging, printing papers and consumer packaging, and is the largest manufacturer of container board in the U.S. Weyerhaeuser Co. ( WY) , with a market cap of $17.04 billion, trades in pulp and timber, and grows and harvests trees, builds homes and makes a range of forest products. Sonoco Products Company ( SON) , with a market cap of $3.51 billion, makes industrial and packaging products. 

Today's share prices: 
International Paper ( IP) $46.31 
Sonoco Products Company ( SON) $34.59 
Weyerhaeuser Co. ( WY) $31.33 
Resolute Forest Products Inc. ( RFP ) $16.07 

In the same year Resolute was emerging from credit protection, 2010, the company joined with Greenpeace and other organizations to become a founding member of the Canadian Boreal Forest Agreement. The group formalized an agreement to protect the diversity of ecosystems and wildlife within the Boreal region. 

In his 2012 message to shareholders, Resolute's Richard Garneau, president and CEO, stated, "We work hard to integrate sustainability into the way we do business because we believe this approach brings value to our customers, our shareholders, our employees and the communities where we live and work." 

In 2012 Resolute Forest Products reported progress on its key sustainability commitments, including the areas of carbon management, fiber sourcing, forest certification, health and safety and product stewardship that involves using less fiber and fewer chemicals than competitive papers. The company has also developed and published a formal policy on First Nations relations with Canada's indigenous tribes. 

According to CEO Garneau, "Resolute recognizes that focusing on sustainability is good business. Our decision to produce a report combining financial and sustainability performance demonstrates our commitment to balancing environmental, social and economic priorities." 

"Canada's Warren Buffett," Prem Watsa's top buys, sells and holdings

Mercer International Inc. announced that Steelhead Partners, LLC publicly announced on March 31, 2012, that it will reserve its decision to tender its common shares of Fibrek Inc., held by its affiliate, to the unsolicited insider bid made by AbitibiBowater Inc. Further, Steelhead announced that it would decide whether or not to tender to the Abitibi bid only once (and if) Abitibi's minimum tender condition was met.

Mercer urges Fibrek shareholders not to tender to the Abitibi bid, which, as of March 20, 2012, had received support of only approximately 46% of the Fibrek shares, which is almost entirely represented by THREE locked up shareholders. In order to be successful, the Abitibi bid requires a minimum tender of 50.01%. We therefore encourage Fibrek shareholders not to tender to the Abitibi bid, which requires your support in order to succeed. We urge shareholders to continue to support, and benefit from, the Mercer $1.30 superior offer.

A hearing before the Québec Bureau de décision et de révision (the "Bureau") remains set for Monday, April 2, 2012 to consider an application for a "cease trade" order and/or other appropriate relief in respect of the Abitibi bid. The Ontario Securities Commission, without commenting on the merits of our application to cease trade the Abitibi bid, including preventing Steelhead and Fairfax Financial Holdings Limited from tendering their Fibrek shares to the Abitibi bid, determined last Friday that, although it had jurisdiction to hear the application, the proper forum for the application was before the Bureau.

Resolute Forest Products ("Resolute") has announced that it intends to make a formal take-over bid to acquire all of the issued and outstanding common shares (the "Common Shares") of Fibrek Inc. ("Fibrek", TSX: FBK).

"The acquisition of Fibrek is consistent with our strategy," stated Richard Garneau, President and Chief Executive Officer. "As we continue to focus on building a sustainable and profitable Company, growth in expanding global pulp markets is the right move, at the right time, for Resolute Forest Products. The range of optimization opportunities that we expect from this acquisition will, over time, deliver increased value to our shareholders."

The offer would contemplate that holders of Fibrek shares could elect to receive, for each Fibrek share:

• Cash and Share Option: C$0.55 in cash and 0.0284 of a Resolute share
• Cash Only Option: C$1.00 in cash (subject to proration, as described below)
• Shares Only Option: 0.0632 of a Resolute share (subject to proration, as described below)

The maximum amount of cash available will be approximately C$71.5 million and the maximum number of Resolute shares to be issued will be approximately 3.7 million shares. For purposes of calculating the applicable proration, the maximum cash available and the maximum shares available will first be reduced by the amounts necessary to fully satisfy the Cash and Share Option. The Cash Only Option and the Shares Only Option will each be subject to proration in the event aggregate elections exceed the remaining cash or the remaining shares, respectively.  If proration applies, the remaining consideration will be delivered in Resolute shares if the Cash Only Option is prorated, or in cash if the Shares Only Option is prorated.

The offer will contain customary conditions for transactions of similar nature, including, among others, a 66⅔% minimum tender condition, waiver or termination of all rights under any shareholder rights plan(s), receipt of all regulatory, governmental and third-party approvals, consents and waivers, Fibrek not having implemented or approved any issuance of shares or other securities or any other transaction, acquisition, disposition, capital expenditure or distribution to its shareholders outside the ordinary course of business, and the absence of occurrence or existence of any material adverse effect or material adverse change.

Resolute has entered into lock-up agreements (the "Lock-up Agreements") with three significant shareholders of Fibrek, including Fairfax Financial Holdings Limited and Pabrai Investment Funds, holding, directly or indirectly, an aggregate of 59,502,822 Fibrek shares (representing approximately 46% of Fibrek's issued and outstanding Common Shares). Under the Lock-up Agreements, each of the locked-up shareholders has agreed to tender, or cause to be tendered, all of its Fibrek Common Shares to Resolute's offer, subject to certain conditions. The Lock-up Agreements provide, among other provisions, that Resolute commence a formal take-over bid on or before December 30, 2011, provided certain conditions are satisfied, including there not having occurred any material adverse change with respect to either Resolute or Fibrek. Under the Lock-up Agreements, which are being filed with the U.S. Securities and Exchange Commission (the "SEC"), also available on the Canadian SEDAR filing system, the Locked-up Shareholders have no ability to withdraw any Fibrek Common Shares to tender to or facilitate any competing transaction.

The offer represents a premium of approximately 39% over the closing price of Fibrek's shares on November 28, 2011, and a premium of approximately 31% over the volume-weighted average trading price of the shares on the TSX for the 20 trading days ending on that date.

Full details of the offer will be included in the formal offer and the take-over bid circular to be filed with the securities regulatory authorities and mailed to Fibrek shareholders.

Based on Fibrek's public disclosure, it has 130,075,556 issued and outstanding Common Shares (on a non-diluted basis), valuing the offer at approximately C$130 million, or approximately US$126 million. Resolute currently owns no Fibrek Common Shares.

BMO Capital Markets is acting as financial advisor to Resolute, while UBS is acting as financial advisor to a special independent committee of the Board of Resolute.

Resolute Forest Products, formerly doing business as AbitibiBowater, today began the rollout of its new Company name and identity. When communicating in French, the Company is using the name Produits forestiers Résolu.

"The launch of our new identity, Resolute Forest Products, underscores our forward momentum," stated Richard Garneau, President and Chief Executive Officer. "Our 10,000 employees are united and ready to deliver on Resolute's vision of continued sustainability and profitability."

The Company's new name and associated visual identity now appears on all marketing materials and communications. AbitibiBowater Inc. and its subsidiaries will not change their legal entity names until the Company obtains shareholder approval, as required by law, at its 2012 annual general meeting.

For Resolute's customers, suppliers and other stakeholders little will change beyond how the Company refers to itself. Until the Company obtains shareholder approval to change its legal entity names, the new Company name will not be used on invoices, checks, contracts, product names, Company stocks and stock market listings.

"Resolute is well-positioned for the long term," continued Garneau. "To remain competitive, we must anticipate and respond swiftly to market developments by continuously leveraging operating efficiencies and being opportunistic about investments and realistic when faced with difficult choices."

The Resolute Forest Products logo calls to mind the forest in which the Company works, the paper and lumber products it manufactures, and the modern and dynamic nature of the organization. Paper products are reflected in the half-circle of the "R", symbolizing a paper roll, as well as in the folds within the logo. The rectangular and triangular shapes, in the legs of the "R", represent pulp bales, wood products and forestry. Through the use of green as a primary color, the design also depicts the Company's determination to be a profitable business, committed to sustainability.

AbitibiBowater has announced that it will change the Company name to Resolute Forest Products as of November 7, 2011.

"We are changing our name to Resolute Forest Products to better reflect the fundamental characteristics of the Company we are today, including our determination, strength and resolve to be a profitable, sustainable organization," stated Richard Garneau, President and Chief Executive Officer. "With our competitive cost structure, diversified revenue base and strong balance sheet, we are well-positioned for the long term."

The Company identity change follows an initiative, launched in April 2011, in which employees were invited to suggest a new name for the Company. An internal selection committee and the Executive Team chose Resolute Forest Products from among approximately 1,400 employee submissions.

"This identity change serves as an opportunity to reposition the Company and to redefine ourselves with customers, shareholders and the communities in which we live and work," continued Garneau.

On November 7, 2011, the Company will begin using Resolute Forest Products and related visual identity on its marketing materials, website, signage and other communications. When communicating in French, the Company will use the name Produits forestiers Résolu. Prior to the November launch, the Company will continue to be referred to as AbitibiBowater.

While the Company will be doing business as Resolute Forest Products as of November 7, AbitibiBowater Inc. and its subsidiaries will not change their legal entity names until the Company obtains shareholder approval as required by law. The Company will seek formal shareholder approval at its 2012 Annual General Meeting.

For customers, suppliers and other stakeholders with whom the Company interacts, little will change beyond how the Company will refer to itself and its products. The Company will operate "business as usual" with respect to invoicing, payments, contracts, Company stocks and stock market listings. AbitibiBowater will work to ensure the transition to the new identity is as smooth and seamless as possible for all its stakeholders.

The Resolute Forest Products logo calls to mind the forest in which the Company works, the paper and lumber products it manufactures, and the modern and dynamic nature of the organization. Paper products are reflected in the half-circle of the "R", symbolizing a paper roll, as well as in the folds within the logo. The rectangular and triangular shapes, in the legs of the "R", represent wood products and forestry. Through the use of green as a primary color, the design also depicts the Company's determination to be a profitable business, committed to sustainability.

AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities: economic, social and environmental.

AbitibiBowater Inc. announced today that the Company would take advantage of its strong liquidity position to redeem an additional $85 million of its debt. The redemption will reduce AbitibiBowater's total debt to a face amount of approximately $586 million. This step is in addition to the approximately $270 million of debt the Company redeemed in June 2011.

"Today's announcement underscores our commitment to reduce debt and the associated interest burden at every opportunity," stated Richard Garneau, President and Chief Executive Officer. "Debt reduction remains a key part of our strategy to decrease fixed costs and improve the Company's financial position and competitiveness."

The Company will use available cash to carry out the redemption of $85 million in principal amount of its 10.25% senior secured notes due 2018, plus accrued and unpaid interest. The redemption is scheduled to occur on November 4, 2011, at a redemption price of 103%.

AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities:  economic, social and environmental.

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in close to 90 countries, AbitibiBowater also has third-party certified 100% of its managed woodlands to sustainable forest management standards. The Company's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.

AbitibiBowater Inc. is echoing the concerns of Ontario Northeastern municipal leaders with regards to the newly proposed forest management approach on the Abitibi River Forest that would result in the immediate reduction of the conifer wood supply in the area by 25%, with reductions of up to 65% after 20 years. Last week, the Northeastern Ontario Municipal Association (NEOMA) held a press conference in Timmins, Ontario, to publicly express concern with the Abitibi River Forest's Long-Term Management Direction (LTMD), a document recently released by the Ontario Ministry of Natural Resources (OMNR) for public comment.

The Company is concerned that if confirmed, these significant proposed reductions in wood supply could jeopardize future forest sector investments and curtail employment opportunities generated from forest activities, impacting the economic foundation of 25 Northern Ontario communities.

"We should not have to make a choice between protecting caribou and protecting northern jobs. All too frequently this either/or choice is placed before the public, and everyone is told to line up on the side that best reflects their values. This is unfortunate as environmental considerations and economic outcomes are not mutually exclusive. We agree wholeheartedly that sustainable forest management must recognize all three pillars - economic, social and environmental," stated Richard Garneau, AbitibiBowater's President and Chief Executive Officer.

AbitibiBowater supports a transparent and balanced approach involving the relevant stakeholders, ensuring all three sustainability pillars are addressed. Serious collaborative work is needed to revisit the proposed implementation of the Caribou Conservation Plan in the Abitibi River forest, factoring in the impact of wood supply and its corresponding effects on future employment. This work has to involve representatives of impacted communities, forest companies operating in the area, the OMNR and ENGOs.

"We need to roll up our sleeves and work together, review maps, analyze the numbers, seek out the latest independent science, and come up with solutions that save caribou and provide the resources necessary for a sustainable and prosperous manufacturing sector," concluded Garneau.

AbitibiBowater supports constructive solutions, engaging stakeholders in a collaborative spirit. One potential solution to the LTMD is a reassessment of the southern boundary of the Kesagami range by the OMNR. The assessment should consider the potential benefits of moving the boundary of the range to focus efforts on the areas where the caribou presence is not in dispute. The work could be done in a separate process that does not affect the timing of the current Forest Management Plan, considering that most agree that the wood supply for the next ten years is adequate for current needs.

AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities:  economic, social and environmental.

AbitibiBowater has announced that it has received Forest Stewardship Council^® (FSC) certification for the Black Spruce and Dog River-Matawin Forest areas, north of Thunder Bay, Ontario. This area covers approximately 2.5 million hectares of forest stretching from Lake Nipigon to Quetico Provincial Park.

"This certification represents a major increase in the amount of forest AbitibiBowater now manages under FSC," said Richard Garneau, President and Chief Executive Officer. "This effort is part of our ongoing strategy to meet market expectations as well as ensuring our commitment to sustainable forest management."

The FSC certification process took more than a year to complete and the certification audit entailed four auditors interviewing stakeholders including local citizens committees, community leaders, First Nations communities and various forest contractors working in the region. The two forest regions were certified by the SmartWood Program of the Rainforest Alliance using the National Boreal Standard of FSC. The certificate (FSC-C107523) is valid for five years subject to the annual Surveillance audits.

AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities:  economic, social and environmental.

AbitibiBowater (NYSE: ABH) (TSX: ABH) announced today a capital investment plan that will lead to the restart and upgrade of its currently idled sawmill located in Ignace, Ontario. The C$32 million investment includes the addition of an energy system and kilns to dry lumber, and a planer and packaging system to allow for the production of finished lumber ready for market. Engineering, design and construction activities will occur over the next two years, with a return to production forecast for 2014. The investment is subject to the Company reaching an acceptable labor agreement with the United Steelworkers union and finalizing an agreement on municipal matters with the Township of Ignace.

The Ignace project is consistent with AbitibiBowater's overall strategy of achieving greater efficiency with existing assets, focused growth and building on proven competencies, according to Richard Garneau, President and Chief Executive Officer of AbitibiBowater. "Assuming satisfactory outcomes in discussions with the United Steelworkers and the Township of Ignace, the project announced today will result in a sawmill of good scale by eastern Canadian standards and will allow the Company to more efficiently use the wood supply presently available to us," stated Garneau. "Lumber is and will remain a core business for the Company, particularly where it can favorably affect the economics of our pulp and paper facilities. Once the restart and upgrade are completed, Ignace will be well-positioned to supply both the domestic and U.S. markets."

"We are currently planning on a design and construction schedule running through 2012-13, and a return to full production in late 2013/early 2014. The sawmill will also contribute to improving the cost of fiber for our pulp and paper mills in Thunder Bay and Fort Frances," said Yves Laflamme, Senior Vice President, Wood Products, Global Supply Chain and Information Technology.

This is the fourth significant announcement by AbitibiBowater in Ontario, resulting in over C$100 million in investments. "We have a strong relationship with the Province of Ontario, and we are working together on creating better conditions for capital investments. We would in particular like to thank the Honourable Michael Gravelle, Ontario Minister of Northern Development, Mines and Forestry, for his support," concluded Richard Garneau.

AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities:  economic, social and environmental.

AbitibiBowater Announces Plan to Invest in its Iroquois Falls (Ontario) Paper Mill, Improving its Competitive Position

AbitibiBowater has announced a reconfiguration and capital spending program for its paper mill located in Iroquois Falls, Ontario. The investments will improve overall product quality and the mill's competitive position.

The Company will be investing between C$12-$17 million in the thermo-mechanical pulp mill and on paper machine number 8, the larger of the mill's two machines. The pulp mill investment will result in improved pulp quality with the installation of additional pulp cleaning. Paper machine upgrades will result in improved wet-end formation and newsprint quality. As well, chip receiving and chip handling capabilities will be increased to allow the Iroquois Falls facility to operate on 100% externally supplied chips, with the mill's current woodyard and woodroom being phased out.

"Today's announcement is a critical step in improving the competitive position of our Iroquois Falls operation for the foreseeable future," said Michel Maillé, Vice President, Pulp and Paper Operations. "While it has been a good site over the years, this investment is necessary to meet today's market and economic realities."

The reconfiguration follows consultation with both the Town of Iroquois Falls and the employees at the mill and their union representatives.

The increase in chip receiving and handling capability and the closure of the woodroom and wood yard will occur during the first half of 2012. The reconfiguration will result in a workforce reduction of approximately 60 positions, although the Company hopes the mill demographics will significantly reduce the number of employees who will be laid off given retirement eligibility over the next couple of years. The pulp mill and paper machine investments will be made over the next 12 to 18 months.

"In addition to improving mill economics, the conversion to 100% externally supplied chips will also provide an outlet for chip residuals from sawmills on the Highway 11 corridor. This will be particularly important as markets for Ontario lumber recover," added Maillé.

"The investments announced today are consistent with AbitibiBowater's overall strategy of achieving greater efficiency in its existing mills and building on proven competencies," stated Richard Garneau, President and Chief Executive Officer. "Newsprint remains an important component of our business. While market and economic conditions remain challenging, the Company will invest where there is a good resource base, a strong workforce and a receptive investment climate. The investments announced today reflect our view that the Iroquois Falls mill and its employees are worthy of our confidence and that Ontario is a good place to invest."

AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities:  economic, social and environmental.