The Financial Post reports in its Thursday edition that Tembec's two largest shareholders -- Oaktree Capital Management and Restructuring Capital Associates, which between them own about 37 per cent -- have said they will not support the company's takeover by Rayonier Advanced Materials. The Post's Barry Critchley, writing in Off the Record, says that now comes word that lawyers retained by Oaktree have complained to the regulators, in this case the Ontario Securities Commission and Quebec's AMF. The lawyers would like the regulators to make Tembec provide some clarity on what it said on May 25 (when the proposed acquisition was announced) and what has happened since can be squared up.
Back then Tembec said, "Fairfax Financial, a 19.99 per cent shareholder of Tembec has advised us that it is supportive of the transaction."
While Fairfax did not enter into a support agreement with Tembec, it is unusual to be "supportive" of the transaction and sell shares before the meeting. (In making those sales, Fairfax received a higher price in the market compared with selling them to Rayonier's offer.)
Amid that negativity, proxy adviser Glass Lewis has urged shareholders to vote against the proposed acquisition.
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