Montreal, Quebec, Canada 16 September 2014 -- Tembec today announced the closing of the sale of approximately 31,800 hectares of land located within the Regional District of East Kootenay, British Columbia, to Jemi Fibre Corp. ("Jemi"), which sale was previously announced on April 25, 2014. Total consideration for the transaction was $21 million, including a deferred amount of $2 million payable by no later than June 24, 2021. Under certain circumstances, the repayment of the deferred amount may be accelerated. The transaction is the second part of a two phase sale. The first phase of the sale closed on June 25, 2014. As a result of the most recent sale of land, the Company will record a gain of $15 million in its September 2014 financial results.
The transaction is part of the BC Land Sale Initiative. The Company has set an objective of realizing up to $70 million in land sales by December 2014. To date, the Company has realized a total of $60 million. The Company will provide regular updates on the BC Land Sale Initiative as it progresses. There can be no assurance that the Company will attain the stated objective or that it will do so within the specified time period.
Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 3,500 employees and annual sales of approximately $1.6 billion. Tembec is listed on the TSX (TMB).
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variations thereof, and expressions of similar nature. Forward‑looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in the Company's periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.