{"id":490325,"date":"2010-03-30T09:26:00","date_gmt":"2010-03-30T13:26:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:416134"},"modified":"2010-03-30T09:26:00","modified_gmt":"2010-03-30T13:26:00","slug":"domtar-shares-rise-on-sale-of-forest-products-business","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/490325","title":{"rendered":"Domtar shares rise on sale of forest products business"},"content":{"rendered":"

Shares in Domtar Corp.<\/a> are up 3% Tuesday morning, following news Monday that it has agreed to sell their forest products business to Vancouver-based EACOM Timber
\nCorporation.\n<\/p>\n

The transaction is valued at $80-million plus working capital estimated at between $30-million and $40-million.  It is expected to close in June and involves five operating sawmills in various
\nregions of the country, including Timmins<\/span>, Nairn Centre<\/span> and Gogama<\/span> in Ontario<\/span>, and Val-d'Or<\/span> and Matagami<\/span> in Quebec<\/span>. <\/p>\n

Two non-operating sawmills at Ear Falls<\/span> in Ontario<\/span> and Ste-Marie<\/span> in Quebec<\/span> are also included in the deal. <\/span><\/p>\n

Raymond James analyst Daryl Swetlishoff upgraded his rating on Domtar stock to Strong Buy from Outperform and increased his price target to $80 from $75.<\/p>\n

"We are positive on the sale as historically these assets have been economically challenged and diverted management\u02b9s focus from the core white paper business," he said in a note to clients. <\/p>\n

The analyst said Domtar will likely divest other non-core assets over time, better enabling the company to meet its $1.1-billion net debt target. <\/p>\n

"Aside from positive valuation implications we view the deleveraging as allowing Domtar the flexibility to expand its core paper or merchants businesses and returning cash to shareholders with a dividend reinstatement," Mr. Swetlishoff said. <\/p>\n

David Pett<\/a> <\/p>\n

fctAdTag("bigbox",MyGenericTagVar,1);<\/p>\n
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<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Domtar Corp. are up 3% Tuesday morning, following news Monday that it has agreed to sell their forest products business to Vancouver-based EACOM Timber Corporation. The transaction is valued at $80-million plus working capital estimated at between $30-million and $40-million.  It is expected to close in June and involves five operating sawmills in […]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-490325","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/490325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=490325"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/490325\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=490325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=490325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=490325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}