VANCOUVER/ TORONTO – The Supreme Court of British Columbia gave approval to a planned C$762.6 million ($667 million) merger between Ainsworth Lumber Co. Ltd and Norbord Inc., a wood components manufacturer.
The combined companies will create one of the largest producers of oriented strand board (OSB) panels globally.
The transaction remains subject to customary conditions to closing. As previously announced, Norbord and Ainsworth are providing the U.S. Department of Justice (the "DOJ") with the information it has requested about the transaction and are working proactively with the DOJ to ensure an expedited review process. Subject to the satisfaction or waiver of all closing conditions, the transaction is expected to close by the end of the first quarter of 2015.
Under the terms of this new arrangement Norbord will acquire all of the outstanding common shares of Ainsworth in an all-share transaction in which Ainsworth shareholders will receive 0.1321 of a Norbord share for each Ainsworth share pursuant to a plan of arrangement under the British Columbia Business Corporations Act.
Norbord employs approximately 1,950 people at 13 plant locations in the United States, Europe and Canada and has assets of more than $1 billion.
Ainsworth’s four OSB manufacturing mills, located in Alberta, British Columbia and Ontario, have a combined annual capacity of 2.5 billion square feet (3/8-inch basis).
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