2 February 2007 — Federal Way (WA): Weyerhaeuser has today commenced an offer to exchange some or all of its common shares for shares of Domtar’s common stock.
Back in August, Weyerhaeuser and Domtar agreed to combine Weyerhaeuser’s fine paper business and related assets with Domtar to form Domtar Corporation.
Under the terms of the deal, participating Weyerhaeuser shareholders will receive approximately $1.11 worth of Domtar’s common stock for each $1 of Weyerhaeuser shares tendered in the exchange offer.
The exchange is expected to be tax-free to participating Weyerhaeuser shareholders for US federal income tax purposes.
The offer will expire at midnight EST on 2 March unless extended or terminated.