Resolute Forest Products, Inc. (NYSE: RFP) is a global leader in forest products, such as market pulp, tissue, paper, and other wood products. The company’s products are marketed in over 60 countries. Resolute also operates 40 facilities and power generation assets across North America. Shares of the paper products company are surging 64% through early trading on Wednesday, July 6, 2022. Over the past three months, Resolute Forest Products has seen average daily volume of 1.03 million shares. However, volume of 8.66 million shares or dollar volume of around $177.1 million, has already exchanged hands through early trading.
Shares of Resolute Forest Products are soaring after the company announced that it has entered into a definitive agreement to be acquired by Paper Excellence Group and its wholly-owned subsidiary, Domtar Corporation, for a total value of $2.7 billion.
Under the terms of the transaction, Paper Excellence Group will acquire all outstanding shares of Resolute Forest Products. In exchange, Resolute shareholders will receive $20.50 per share in cash and a contingent value right (CVR) entitling the owner to a share of future softwood lumber duty deposit refunds.
Upon closing of the transaction, Resolute will become a wholly-owned subsidiary of Domtar Corporation, under the auspices of the Paper Excellence Group. Resolute will continue to operate “business-as-usual” under the Resolute name, with its existing management team, and employees.
“With this transaction, Resolute will accelerate its growth as it gains access to more tools, capital and opportunities to pursue our ambitions with the combined resources of the Paper Excellence Group,” stated Remi G. Lalonde, Resolute’s president and chief executive officer. “This is good for employees and the communities where Resolute operates because we will continue to grow in a manner consistent with our core values of accountability, caring and trust that we hold dear. Together, we will form a stronger and more resilient, diversified forest products company, positioned to compete on a truly global scale, with a shared commitment to being a trusted business partner, dedicated to sustainability and to caring for its people and communities.”
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