Resolute Forest Products Inc (RFP)

[Enterprising Investor]

Done deal.

[blast1977]

Was that finalized?

[Enterprising Investor]

CVR

Stockholders will receive any refunds received on approximately $500 million of deposits on estimated softwood lumber duties paid by the Company through June 30, 2022, including any interest received on such deposits, net of certain expenses and of applicable tax and withholding.

$500 million could equate to $6.51 per share.

[Enterprising Investor]

Paper Excellence Welcomes Resolute Into Its Family of Companies (3/01/23)

RICHMOND, BC, March 1, 2023 /PRNewswire/ - The Paper Excellence Group (the "Group"), through its wholly-owned subsidiary Domtar Corporation ("Domtar"), today announced the successful closing of its previously announced acquisition of Resolute Forest Products Inc. ("Resolute") (NYSE: RFP) (TSX: RFP). Today's acquisition creates a stronger and more resilient diversified forest products company, manufacturing a range of pulp products and specialty, printing, writing, and packaging papers, as well as lumber and tissue. The acquisition of Domtar in 2021 and Resolute today significantly increases the Group's scale, overall product offering and geographic reach.

"We are thrilled to welcome Resolute into the Paper Excellence Group. Resolute's business is complementary to our own. It introduces new products to our offering and allows us to welcome an impressive workforce, strengthening our existing team. We are well positioned with the addition of competitive lumber capacity at a time of significant shortage in housing stock throughout North America," stated Patrick Loulou, Vice Chairman and Chief Strategy Officer of the Paper Excellence Group. "Resolute has shown that it shares our values and high standards related to the environment, our communities, and our people."

"Together we are creating a stronger player in the global marketplace. We look forward to collaborating with our new colleagues, generating long-term value and driving sustainable economic activity in the communities where we operate," said Remi G. Lalonde, Resolute's President and Chief Executive Officer. "The combined company will adopt best practices, sharing a common goal of sustainability leadership, and meaningful community engagement and partnerships, including with Indigenous communities."

Under the terms of the agreement, Resolute stockholders are receiving $20.50 for each share of the Resolute common stock. They also receive one contingent value right ("CVR") per share (on a fully diluted basis) entitling the holder to a share of potential future softwood lumber duty deposit refunds on about $500 million of deposits paid by Resolute. Resolute common stock will cease to be listed on the New York Stock Exchange and the Toronto Stock Exchange.

Advisors

Barclays served as exclusive financial advisor to Paper Excellence, and Latham & Watkins LLP, McMillan LLP, McCarthy Tétrault LLP, and Mehigan LLP served as legal advisors.

CIBC Capital Markets served as exclusive financial advisor to Resolute, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Stikeman Elliott LLP served as its legal advisors.

Financing

Barclays, CoBank, and Bank of Montreal provided financing to Domtar in connection with the transaction.

About Paper Excellence Group

The Paper Excellence Group is a privately held diversified manufacturer of pulp and specialty, printing and writing, and packaging papers, producing over 7 million tons annually with a workforce of over 10,000 in its nearly 40 locations across the Americas and Europe. Through its individual business units, the Group leverages its operational excellence and sustainable high-quality, cost-effective products to deliver high quality pulp and paper to its customers around the world. For more information on Paper Excellence, please visit www.paperexcellence.com. To learn more about Resolute Forest Products, visit www.resolutefp.com.

SOURCE Paper Excellence Group

[Enterprising Investor]

HSR waiting period has expired (2/24/23)

All conditions to the closing of the merger have now been satisfied.

Closing is expected in early March 2023.

https://www.sec.gov/ix?doc=/Archives/edgar/data/1393066/000119312523047518/d474433d8k.htm

[Enterprising Investor]

Resolute Forest Products: Holding On To A Negative Spread (12/01/22)

https://seekingalpha.com/article/4561665-resolute-forest-products-stock-holding-negative-spread

[Enterprising Investor]

Resolute Stockholders Vote in Favor of Each Proposal at Special Meeting (10/31/22)

MONTREAL, Oct. 31, 2022 /PRNewswire/ - Stockholders of Resolute Forest Products Inc. ("Resolute" or the "company") (NYSE: RFP) (TSX: RFP) today approved a proposal to adopt the Agreement and Plan of Merger, dated as of July 5, 2022 (as it may be further amended, modified or supplemented from time to time, the "merger agreement"), by and among the company, Domtar Corporation, a Delaware corporation ("Domtar"), Terra Acquisition Sub Inc., a Delaware corporation and a wholly owned subsidiary of Domtar ("Merger Sub"), Karta Halten B.V., a private limited company organized under the laws of the Netherlands, and Paper Excellence B.V., a private limited company organized under the laws of the Netherlands, pursuant to which Merger Sub will be merged with and into the company (the "merger"), with the company surviving as a wholly owned subsidiary of Domtar.

The adoption of the merger agreement required the affirmative vote of stockholders holding a majority of the issued and outstanding shares of Resolute's common stock entitled to vote on such matter.

A total of 81.5% of the issued and outstanding shares of Resolute's common stock entitled to vote at the special meeting of stockholders was voted in favor of the merger agreement. Of the total shares voted, 99.8% were voted in favor of the merger agreement. In addition, the non-binding compensation advisory proposal was also approved by a majority of the shares represented at the meeting.

Resolute currently expects to complete the merger in the first half of 2023, subject to receipt of regulatory approvals and the satisfaction or waiver of the other conditions to the closing of the merger.

About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 60 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.

Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.

https://www.prnewswire.com/news-releases/resolute-stockholders-vote-in-favor-of-each-proposal-at-special-meeting-301663693.html

[Enterprising Investor]

Resolute to Hold a Special Meeting of Stockholders on 10/31/22.

[Pitt77]

For the transaction. Objectively, it is a great deal that can only boost the company. In addition, as we keep the expertise in place, by its management, the Cie will surely develop greater challenges. I do not know the Asian buyer, but if they are like M Watsa, it is surely good people, who will be able to benefit the interest of the shareholder.

[Pitt77]

It is really unfair, for us, all the former shareholders of the CIE (ABWTQ) to have nothing for this transactions. It would not have been very expensive to compensate for us. Faithful employee and shareholder, for 40 years, and to see that an elite make so much money, is frustrating and scandalous. Our capitalist democracies must stop destroying small shareholders by their weapons of mass destruction (CDS), because ethics is the only virtue, which our world needs most, to dominate the global economy. If not, authoritarian regimes will be right for our unscrupulous and devastating ideology.

[fishhunter]

I’m pretty happy! I actually bought more this morning at 20.50 and will hold all through the closing this Fall to get the CVRs. Congrats to you as well!

[swampboots]

60% premium buyout, still holding, as payback for only one on this site who saw value??

[blast1977]

Same pattern before the earnings. If this happen be ready for another %20 drop next week

[blast1977]

Well Canadian rail and road voted 94% for a strike which may start in 48-72 hrs.
This is not a good sign if it happens. Nothing is going to move out of Canada. 1 strike day will take 4-6 days to come back to normal.

[fishhunter]

I have no idea what you are talking about. Haven’t heard or read anything about a strike. But if there is one it will not hurt lumber or paper or pulp companies. Result would be pent up demand and crazy high prices.

[blast1977]

What about the Strike on road and rail that will happen next week
This will impact number for sure Unless they are able to sell the Tissue division soon for a big chunk of money
Your thought ?

[fishhunter]

Good to see your posts here. RFP is still so undervalued, just crazy. Ev/ebitda of 1. Essentially no debt. Pension will be overfunded within a year due to int rate rise. The Q1 they are in now will generate over $400mil in free cash flow. Half the market cap! Insanity.

[blast1977]

Big news coming up ?? seems that they gave up on the Tissue and cut their loss.

[blast1977]

No we know why the Buy back in place to support the news about Calhoun I bet most of the repurchased shares will be used for this announcement

[blast1977]

Big decision about Calhoun but what’s the plan on how to make money ???
I still do not see a vision for the company and if Tissue is supposed to be why they did not announced any projects since the 2017 ?
I m undecided. All I see is cutting losses and burning big amount of cash to clean the books.

[fishhunter]

I am back in. Started buying after the recent stock buyback announcement and love today's news about Calhoun paper and pulp. Both of these are important because they are crystal clear confirmation that the new COB, Davies is able to exert his will! This will be a $50 stock in a few years.

[blast1977]

What you all think of the 3Q ? As usual RFP goes down after the publication.
I guess any fallback to $10 is a big opportunity.

[fishhunter]

Long and strong.....again!
The valuation metrics, PS, PB, EV/ebitda, PE are all too strong for me to stay away. I simply would rather own it than not own it. And if you want a little income as you wait, strategically sell a few covered calls.

[fishhunter]

Bought more shares after recent drop.
No sense in selling calls any more.
In fact, buying calls is a decent bet now.
Lumber stabilized and starting to rise.

[fishhunter]

For now, sell near term covered calls. Wash, rinse, repeat.

[fishhunter]

Yes.
Spectacular transformational earnings report today.

[blast1977]

Still a BUY ?

[fishhunter]

Yesterday was last day to buy to get div

[blast1977]

What’s happening I thought the divisent was on Monday

[blast1977]

I cannot believe that we are still not back to $16+
Would be a shame to close in red today

[blast1977]

That will say that the price will drop by $1 but the option will cost the same
Okay was not sure thx

[fishhunter]

I don’t know for sure but I don’t think the options adjust at all. Look at some big blue chips that pay dividends, their options don’t adjust.

[blast1977]

Alright got a question about that dividend. If u hold options when the dividend get paid how the option will adjust?

[fishhunter]

I agree with you, RFP is way too cheap at the moment.
And this moment aint lastin long.
See ya in the 20s soon.

[blast1977]

Well well
Even with Lumber at $1200 I totally think RFP is worth a lot more.
Tissue will be in the RED big time but lumber should still make the $200M
Buying back

[fishhunter]

And buying deep in the money calls for Oct and Nov.

[fishhunter]

What a beautiful stock and sector. Selling lots of way out of the money covered calls.

[fishhunter]

It finally reversed today. Next leg up coming for RFP. Lumber is the base, pulp the frosting.

[blast1977]

Big drop on the lumber back down to $1300

[Tiger Money]

i am trying to do an addition to my house and lumber is no where to be found. each time i get the run around from my contractor (not really a run around as it is true), i buy more of this stock...

[blast1977]

Don’t jinx it bro. We are back in the $1500

[Tiger Money]

Lumber is not crashing anytime soon so that is our beautiful hedge my friend

[fishhunter]

There is always risk in owning a stock.
If lumber were to crash to sub $700 then RFP goes down hard.
But pulp is also a big factor that could support the stock quite easily all by itself.

[Tiger Money]

Any downside? Trading at ONLY 3x forward earnings! Cheap cheap cheap

[fishhunter]

It is and will keep going up
And up
And up
And up
For all the right reasons!

[Tiger Money]

Great stock here!

[saigai]

i think the issue is management...i think they are clueless

[blast1977]

$1,700 and we are still stuck below $15

[saigai]

no red here....not even on an abysmal day like today....buy back the rest along the rest

[Pitt77]

I do not know but the title is very undervalued. Considering a US economy at the outflow of pandemic, with a growth of 6% of PIB, timber prices should still be at a good level, due to strong demand. Finally, we can conclude that the CIE benefits from this crisis, and again, which will allow it to strengthen its restructuring. That is, that factory closures like Comeau Bay and AMOS, will allow CIE to cut its losses in the decline of paper, and enjoy, delightful subsidies, to develop new revolutionary products.