/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DESTINATION
IN THE UNITED STATES/
MONTREAL and VANCOUVER, June 14,
2013 /CNW Telbec/ - Reference is made to the offer dated
April 5, 2013 (the "Offer")
by ET Acquisition Corporation (the "Offeror"), a new corporation
indirectly owned or controlled by funds managed by Kelso &
Company ("Kelso"), as amended and supplemented by the notice of
extension dated May 10, 2013, to
purchase all of the issued and outstanding common shares ("Common
Shares") in the capital of EACOM Timber Corporation ("EACOM") at a
price of $0.38 per Common
Share. As previously announced, the expiry time for the Offer
was 5:00 p.m. (Toronto time) on June
14, 2013.
Kelso and EACOM are pleased to jointly announce that all terms
and conditions of the Offer have been satisfied or waived, and that
the Offeror will take up and accept for payment 643,482,709 Common
Shares validly deposited under the Offer, representing
approximately 95% of the issued and outstanding Common
Shares. EACOM shareholders who deposited their Common Shares
to the Offer will receive payment for such Common Shares no later
than three business days following the date hereof.
Following the take-up and acceptance for payment of 643,482,709
Common Shares validly deposited under the Offer by the Offeror,
Kelso and its affiliates will now own and control 643,482,709
Common Shares or approximately 95% of the issued and outstanding
Common Shares in the capital of EACOM.
The Offeror is entitled to nominate up to 9 directors to the
board of directors of EACOM (the "Board"). EACOM has received
resignations from each of Rick
Collins, Jeremy Curnock Cook,
Frank Giustra, Paul Reynolds, the Honorable John D. Reynolds
P.C. and Gilles Masson, which the
Board has accepted. Philip E.
Berney, James J. Connors,
George E. Matelich, Matthew S. Edgerton and William C. Frayer have been appointed by the
Board to fill the vacancies created.
Kelso and EACOM also jointly announced that the Offeror has
extended the expiry date of the Offer to 12:01 a.m. (Toronto time) on June
25, 2013, pursuant to a Notice of Extension dated
June 14, 2013 (the "Notice of
Extension"), to allow shareholders of EACOM a further opportunity
to deposit their Common Shares pursuant to the Offer. The
Notice of Extension will be sent by the Offeror to EACOM
shareholders.
This news release contains summary information only about the
Offer. Complete information about the Offer is contained in
the Offer and the related take-over bid circular (and other
documents related to the Offer, including the Notice of Extension),
copies of which are available at www.sedar.com.
About EACOM
EACOM Timber Corporation is a TSX-V listed
company. The business activities of EACOM consist of the
manufacturing, marketing and distribution of lumber, wood chips and
woodbased value-added products, and the management of forest
resources. EACOM owns eight sawmills, all located in Eastern Canada, and related tenures. The mills
are Timmins, Nairn Centre, Gogama, Elk
Lake and Ear Falls in
Ontario, and Val-d'Or, Ste-Marie and Matagami in Quebec. The mills in Ear Falls, Ontario and Ste-Marie, Quebec are currently idled. The
mill in Timmins, which was
seriously damaged by fire in January
2012, is under reconstruction. EACOM also owns a lumber
remanufacturing facility in Val-d'Or,
Quebec, and a 50% interest in an "I" joist plant in
Sault Ste-Marie, Ontario.
About Kelso
Kelso & Company is one of the oldest and
most established firms specializing in private equity. Since
1980, Kelso has invested in over 115 companies in a broad range of
industry sectors with aggregate initial capitalization at closing
of over $40 billion. The firm
is currently investing its eighth investment partnership, Kelso
Investment Associates VIII, L.P., with $5.1
billion of committed capital. For more information,
please visit www.kelso.com.
The TSX Venture Exchange has neither approved
nor disapproved the content of this press release. All director and
officer appointments are subject to TSX Venture Exchange
approval.
Forward-Looking Statements
All statements in this news release that are
not based on historical facts are "forward-looking statements". In
this news release, such forward-looking statements include
statements regarding the ability of Kelso to complete the take-over
bid, the anticipated benefits of the take-over bid, the anticipated
benefits to EACOM shareholders of the take-over bid, the timing of
the take-over bid and the anticipated receipt of regulatory
approvals for the take-over bid. While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties and other factors, many of which are beyond
our control and could cause actual results to materially differ
from such statements. Such risks, uncertainties and other factors
include, but are not necessarily limited to, those set forth under
"RISKS AND UNCERTAINTIES" in the EACOM's current MD&A, and
under "RISK FACTORS" in EACOM's Filing Statement dated January 8, 2010.
Additional information relating to EACOM is available at
www.eacom.ca and on SEDAR at www.sedar.com.
SOURCE EACOM