Domtar Announces It Has Applied to Cease to Be a Reporting Issuer in Canada

Rhea-AI Summary

Domtar Corporation has applied to the Canadian Securities Regulatory Authorities to cease being a reporting issuer in several provinces following its acquisition by Karta Halten B.V. This application may impact Domtar's regulatory reporting obligations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland, and Labrador. This decision comes in line with the completion of the acquisition announced on November 18, 2021, and is being executed in accordance with Canadian securities laws.

Positive

• Domtar is streamlining regulatory obligations by applying to cease being a reporting issuer.
• The acquisition by Karta Halten B.V. strengthens Domtar's strategic positioning.

Negative

• Ceasing to be a reporting issuer may limit transparency for shareholders and market participants.
• Regulatory approval is uncertain and could pose risks if not granted.

FORT MILL, S.C.--(BUSINESS WIRE)-- Domtar Corporation (the “Company”) announced today that it has applied to the Autorité des marchés financiers (“AMF”), as principal regulator, and the Ontario Securities Commission (collectively, the “Canadian Securities Regulatory Authorities”) under Regulation 11-102 respecting Passport System and Policy Statement 11-206 respecting Process for Cease to be a Reporting Issuer Applications for an order (the “Order Sought”) to cease to be a reporting issuer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador (collectively, the “Jurisdictions”).

The Company has made this application following the completion of Karta Halten B.V.'s acquisition of the Company (the “Acquisition”), as announced in the Company's news release dated November 18, 2021. If the Canadian Securities Regulatory Authorities grant the Order Sought, the Company will cease to be a reporting issuer in the Jurisdictions. This press release is being circulated in accordance with applicable Canadian securities laws.

About Domtar

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens. With approximately 6,000 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s principal executive office is in Fort Mill, South Carolina and Domtar is part of the Paper Excellence group of companies. To learn more, visit www.domtar.com.

Forward-Looking Statements

Certain statements contained in this article, and other written and oral statements made from time to time by us or on our behalf are based on current expectations and may not relate strictly to historical or current facts and may contain forward-looking statements that reflect our current views with respect to future events. Actual future results, including whether the Order Sought will be granted, could vary from those expressed or implied by the forward-looking information in this release, and depend on regulatory developments, including actions taken by the Canadian Securities Regulatory Authorities and/or other regulatory bodies. As such, they are considered “forward-looking statements” which provide current expectations or forecasts of future events. Such statements can be identified by the use of terminology such as “anticipate”, “believe”, “expect”, “intend”, “aim”, “target”, “plan”, “continue”, “estimate”, “project”, “may”, “will”, “should” and similar expressions. These forward-looking statements should be considered with the understanding that such statements involve a variety of risks and uncertainties, known and unknown, and may be affected by inaccurate assumptions. Consequently, no forward-looking statement can be guaranteed and actual results may vary materially. Many risks, contingencies and uncertainties could cause actual results to differ materially from our forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221118005572/en/

MEDIA RELATIONS

Kathy Wholley

Vice-President, Communications & Public Affairs

Tel.: 803-802-8006

Source: Domtar Corporation

FAQ

What is Domtar Corporation's latest press release about?

Domtar Corporation has applied to cease being a reporting issuer in multiple Canadian provinces following its acquisition by Karta Halten B.V.

Why is Domtar Corporation seeking to stop being a reporting issuer?

The company aims to streamline its regulatory obligations after the completion of its acquisition.

What provinces are affected by Domtar Corporation's application?

The application affects British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland, and Labrador.

When was the acquisition of Domtar Corporation by Karta Halten B.V. announced?

The acquisition was announced on November 18, 2021.

What are the potential risks of Domtar Corporation ceasing to be a reporting issuer?

The main risks include reduced transparency for shareholders and uncertainty in obtaining regulatory approval.