Business
Western Announces Sale of Certain Non-Core Assets
Western Announces Sale of Certain Non-Core Assets
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\nOct. 13, 2009 (Canada NewsWire Group) -- DUNCAN, BC, Oct. 13 /CNW/ -- Western Forest Products Inc. (TSX: WEF) (\"Western\" or the \"Company\") today announced that it has sold certain higher-and-better-use properties in central and northern Vancouver Island (the \"HBU Properties\") to a joint venture established between the Company and Brookfield Properties Limited (\"Brookfield\"), a wholly-owned subsidiary of Brookfield Properties Corporation (TSX: BPO). The HBU Properties were formerly part of the group of properties that were included in the Company's non-core asset sales program. In connection with the establishment of the joint venture and the sale of the HBU Properties, Western will receive total cash proceeds of approximately $12 million.As part of the joint venture arrangements, the joint venture vehicle (the \"JV Entity\") has a right of first offer to purchase for possible future development approximately 630 acres of additional higher-and-better-use properties in central and northern Vancouver Island. These properties also represent non-core assets of the Company.Pursuant to the joint venture arrangements, Western holds less than 5% of the equity of the JV Entity and has a right to sell its interest in the JV Entity to Brookfield for its fair market value at any time on or after January 1, 2011. Brookfield is the manager of the JV Entity, which also holds Carma Developers LP, a limited partnership that carries on a land development business across Western Canada.An independent committee of Western's Board of Directors unanimously recommended that the Board of Directors approve the transaction. Western's Board of Directors unanimously approved the transaction on October 8, 2009.The transaction constitutes a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") because the transaction involves parties related to the Company. The Company is relying on the \"financial hardship\" exemption in subsections 5.5(g) and 5.7(1)(e) of MI 61-101 to complete the transaction without obtaining an independent valuation or minority shareholder approval that MI 61-101 would otherwise require.The Company will file a material change report as soon as practicable after issuing this press release. The Company did not file a material change re...