Tembec sells 49,500 hectares of land in British Columbia

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Tembec/IHB
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Tembec has reached an agreement to sell approximately 49,500 hectares of land located within the Regional District of East Kootenay, British Columbia, to Jemi Fibre Corp. for a price of $35 million.

The transaction includes a 7 year earn-out provision pursuant to which Tembec would be entitled to additional payments of at least $2.1 million. The sale is expected to close in two phases: the closing of the first phase in connection with the sale of approximately 17,700 hectares for a price of $15 million is expected to occur in June 2014 and the closing of the second phase in connection with the sale of approximately 31,800 hectares for a price of $20 million is expected to occur in September 2014.

The transaction is part of the previously announced BC Land Sale Initiative. Tembec has set an objective of realizing up to $75 million in land sales by December 2014. To date, the company has realized a total of $23.2 million. Assuming that the aforementioned transactions close as contemplated, total land sales will have reached $60.3 million, including the $2.1 million of deferred payments. The company owns a further 7,433 hectares of lands in British Columbia for which it actively continues to solicit potential buyers.

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