Delay in Pope and Talbot Sale

Wednesday, April 02, 2008 03:58 AM

Prince George, B.C. - The sale of some of Pope and Talbot's asstes, including the Mackenzie pulp mill, won't be wrapping up as quickly as planned.

Initially the deal was to close by the end of this week. Now, Pope and Talbot says the sale will likely close at the end of the month. Apparently there are some paperwork issues.

There are some technical issues that are keeping the $231 million dollar deal from wrapping up. That sale has Asia Pulp and Paper buying the pulp mills for 225 million and paying $ 6 millon for the Fort St James Sawmill and its timber tenure.

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Posted on Wednesday, April 02, 2008 03:58 AM in News by 250 News

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Comments

Posted by: metalman on April 2 2008 10:59 AM

What a steal for Asia Pacific. They are the wise ones, they got in cheap, and WHEN the market improves they will make a killing. Canfor or West Frasershould have bought P&T.
metalman.

Posted by: Reevus on April 2 2008 1:26 PM

Canfor probably would have if they were not in the midst of downsizing themselves and I believe however I'm not sure, but I think that there might be Anti-trust BS involved if Canfor wanted to purchase.

Posted by: Andyfreeze on April 2 2008 3:53 PM

You are right metalman!
They really missed the boat on this one!
But I am not sure if Canfor would have been able to hold the Fort.St.James mill again, having been more or less forced to sell it.
(or so they say)
Asia Pacific has a reputation being a slash,burn,or sell company as well and very shrewed.
I am not expecting good things from them!

Posted by: justamom on April 2 2008 6:36 PM

My personal judgement says the deal wont go through. There was an article in the Vancouver Sun yesterday.

It didnt sound promising. Asia Pulp & Paper has been ordered to pay thier defaults before purchasing. Along with some relaxed logging ruling on tropical wood. Giving them timber under 2009.
So these mills may just very well be back on the market.

Posted by: realitysetsin on April 2 2008 7:16 PM

Purchase of the sawmill for 6 million, losing about a million a month for the next 12-18 months = real price of 18-24 million.

No thanks.