VANCOUVER, BC – Ainsworth Lumber Co. Ltd. (TSX: ANS) (“Ainsworth”) today provided an update regarding the previously announced agreement with Louisiana-Pacific Corporation (NYSE: LPX) (“LP”) pursuant to which LP would acquire all of the outstanding common shares of Ainsworth.
On September 4, 2013, Ainsworth entered into an Arrangement Agreement (the “Arrangement Agreement”) with LP providing an arrangement under British Columbia law whereby a wholly owned subsidiary of LP would acquire all of the outstanding shares of Ainsworth on the terms and subject to the conditions set forth therein (the “Transaction”).
Since entering into the Arrangement Agreement, LP and Ainsworth have been in regular contact with the United States Department of Justice (“DOJ”) and the Canadian Competition Bureau (“CCB”) with respect to antitrust and competition matters and, in an effort to persuade them that the Transaction should be permitted to proceed, LP and Ainsworth have provided the CCB and DOJ with significant amounts of information and analysis and met with them on multiple occasions. As of the date of this news release, the CCB and DOJ have indicated that they are unwilling to permit the Transaction to be completed in the absence of divestitures that would go beyond those contemplated in the Arrangement Agreement. Because of their indicated positions, it may require LP and Ainsworth prevailing in litigation to complete the Transaction under the current terms of the Arrangement Agreement. Although LP and Ainsworth continue to explore possible solutions and alternatives, Ainsworth is currently unable to determine whether, when or the terms upon which a transaction may be completed. To complete a transaction, it may be necessary to make one or more divestitures of existing operations of LP and/or Ainsworth, to make changes to the Arrangement Agreement and/or to engage in litigation with the CCB and/or DOJ.
Source: Ainsworth Lumber
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