Business
WFP announces completion of rights offering
WFP announces completion of rights offering.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nDUNCAN, BC, March 9 /CNW/ - Western Forest Products Inc. (TSX: WEF) today\nannounced that it has completed its rights offering, which was announced on\nNovember 10, 2005. A total of approximately 127 million subscription receipts\nhave been subscribed for by rightholders for proceeds of approximately \n$210 million. The subscription receipts will be issued on March 16, 2006.\nAt the time of closing of the previously announced acquisition of\nCascadia Forest Products Inc. (\"Cascadia\"), each subscription receipt will be\nautomatically exchanged for one Western common share. The acquisition of\nCascadia is subject to regulatory review, including by the Canadian\nCompetition Bureau, and is currently expected to close by the end of this\nmonth.\nPursuant to a standby purchase agreement with Western, Tricap Management\nLimited (\"Tricap\") will subscribe for approximately 51 million common share\nsubscription receipts not otherwise purchased by rightholders under the rights\noffering at a price of $1.65 per subscription receipt, which subscription is\nexpected to close on March 16, 2006. As such, a total of approximately\n179 million subscription receipts will have been issued as of March 16, 2006\nfor aggregate proceeds of $295 million.\nIf the exchange of subscription receipts would result in a holder or\ngroup of holders beneficially owning or controlling 50% or more of Western's\ncommon shares, Western may, at its option, permit the exchange of that portion\nof the subscription receipts owned by such holder(s) that would result in such\nholder(s) beneficially owning or controlling 49% of the common shares. The\nbalance of the subscription receipts held by such holder(s) will remain\noutstanding until Western has amended its articles to create a new class of\nnon-voting shares. Provided this amendment is approved by Western's common\nshareholders, the subscription receipts held by such holder(s) will be\nexchanged for non-voting shares.\nSubscription funds will be refunded to investors if the Cascadia\nacquisition does not close by May 10, 2006, or if either the Cascadia\nacquisition agreement or the debt facilities arranged by Tricap are\nterminated.\nThe net proceeds from the rights offering will be used to fund the\nacquisition of Cascadia and to provide additional working capital.\n\nTHIS RELEASE DOES NO...