Replies to post #12544 on The Rising Influence of Rising Affluence

[jbog]

When such divestitures are completed, WY will be a purer play on timberlands assets—i.e. more similar to what PCL was.

Is that a good thing?

[DewDiligence]

WY sells final piece of cellulose business for $285M in cash:

http://finance.yahoo.com/news/weyerhaeuser-sell-liquid-packaging-board-000000994.html

This divestiture leaves WY with two operating segments: timberlands and wood products; at least 2/3 of the operating income will come from timberlands.

[DewDiligence]

IP gains on buyout chatter:

http://finance.yahoo.com/m/e4579fc3-5891-3fee-9f8c-43b5d2833992/ss_international-paper%3A-takeover.html

[DewDiligence]

WY intends to use $1.6B after-tax proceeds of cellulose-fibers divestiture for debt repayment:

http://finance.yahoo.com/news/weyerhaeuser-completes-sale-cellulose-fibers-143600339.html

Left unsaid in the PR: After WY pays down $1.6B of debt, it will be well-placed to boost the dividend. A dividend boost will, in turn, allow WY to trade like a stock rather than a bond proxy.