Resolute shareholders voted in favor of the Papier excellence offer

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Resolute shareholders voted in favor of the offer of Papier excellence

< p class="styled__StyledLegend-sc-v64krj-0 cfqhYM">The Resolute Forest Products paper mill in Dolbeau-Mistassini

The shareholders of Resolute Forest Products (RFP) have agreed to Groupe Papier Excellence's $2.7 billion acquisition offer on Monday during a virtual meeting.

A majority of shareholders supported the transaction, according to a preliminary report. The support rate has not yet been revealed. The transaction is conditional on the approval of regulatory authorities.

The transaction would make Papier Excellence a major player in the Quebec forest industry. Resolute would become a subsidiary of the Domtar Group, which also became part of the British Columbia company last year.

When the transaction was announced, the President and CEO of Resolute, Rémi G. Lalonde, said that the acquisition of the Montreal company by Papier excellence was good news for Quebec.

It pointed out that the company would have access to more financial resources. He cited the Resolute newsprint mill in Gatineau as an example. The agreement provides for the completion of a feasibility study for the conversion of the plant to a packaging paper production plant.

It's a project of a few hundred million. As a public company that is not in the cardboard sector, it is more difficult to convince public investors to invest 200-300 million dollars for a project like this, indicated Mr. . Lalonde.

In addition to its plants in Alma, Kénogami, Dolbeau and Saint-Félicien, Resolute has facilities in Larouche, Girardville, La Doré, Saint-Prime, Saint-Thomas Didyme and Mistassini, for a total of nearly 1,800 employees in Saguenay-Lac-Saint-Jean.

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