RFP - RFP STOCK NEWS

Resolute Forest Products inaugurated a new commercial-scale plant for producing cellulose filaments at its Kénogami mill in Saguenay, Quebec, on April 24, 2023. This $27 million facility is part of a broader $38 million investment aimed at diversifying market opportunities. Cellulose filaments, a renewable biomaterial derived from wood fiber, can enhance technical performance in various products, including concrete and packaging. The plant is projected to produce up to 21 metric tons of filaments daily, creating approximately 30 new jobs alongside the 200 existing roles at the mill. Local officials and the Quebec government support this initiative, recognizing its potential for economic growth and sustainability in the forestry sector.

The Paper Excellence Group, through its subsidiary Domtar Corporation, has successfully acquired Resolute Forest Products Inc. (NYSE: RFP). This strategic acquisition aims to create a more resilient forest products company, expanding its range of pulp products, specialty papers, and lumber manufacturing. Stockholders of Resolute will receive $20.50 per share and a contingent value right related to potential softwood lumber duty deposit refunds of approximately $500 million. The acquisition enhances the Group's scale and operational capabilities, positioning it favorably within the North American market, particularly amidst a housing supply shortage.

The Paper Excellence Group, through its subsidiary Domtar Corporation, has announced that the Canadian Commissioner of Competition has approved their merger with Resolute Forest Products (NYSE: RFP). Domtar will acquire all outstanding shares of Resolute for $20.50 per share, along with a contingent value right linked to potential duty deposit refunds of up to $500 million. The transaction is expected to close in the first half of 2023, pending other necessary conditions being fulfilled.

Resolute Forest Products (NYSE: RFP) reported a strong Q3 2022 with a net income of $87 million or $1.11 per diluted share, up from $80 million in Q3 2021. Sales reached $974 million, a $157 million increase year-over-year. However, operating income fell to $124 million from $217 million in the previous quarter, mainly due to reduced prices in wood products. The acquisition by Paper Excellence Group was approved by stockholders, with an expected closing in H1 2023. The company maintains a strong liquidity position of $1.3 billion.

On October 31, 2022, stockholders of Resolute Forest Products approved the merger agreement with Domtar Corporation, with 81.5% voting in favor. A total of 99.8% of shares voted were in support of the merger. This transaction will result in Resolute becoming a wholly owned subsidiary of Domtar. The merger is expected to close in the first half of 2023, pending regulatory approvals and other conditions. Additionally, shareholders approved a non-binding compensation advisory proposal during the meeting.

The Paper Excellence Group and Resolute Forest Products (RFP) announced plans to sell Resolute's Thunder Bay pulp and paper mill to aid in the regulatory review process for their acquisition agreement. On July 6, Domtar, a subsidiary of Paper Excellence, agreed to acquire Resolute. Resolute's leadership emphasized the mill's exceptional value and its team's potential for a prosperous future. The sale's completion hinges on the finalization of the acquisition, expected in early 2023, pending necessary regulatory approvals.

Resolute Forest Products will host a virtual special meeting for stockholders on October 31, 2022, at 10:00 a.m. Eastern. The agenda includes a vote on a merger agreement with Domtar Corporation, in which Merger Sub will merge with Resolute, making it a wholly owned subsidiary of Domtar. Additionally, stockholders will vote on an advisory proposal regarding executive compensation tied to the merger. Record date for voting is September 19, 2022. Participants can join the meeting online with a control number and password resolute2022.