Resolute Forest Products: Up on $163 mln deal with Conifex

Conifex Timber

24/12/2019 16:13

** Shares of wood products maker  RFP.N  up 3% at $4.06;
Toronto-listed Conifex Timber Inc's shares  CFF.TO  more than
double to C$0.74
    ** RFP agrees to buy three sawmills from Conifex in the U.S.
South for $163 mln  
    ** Includes net working capital (currently estimated at $7
mln) to be paid at deal close, expected in Q1 2020  urn:newsml:reuters.com:*:nCNWbJYVta
    ** "This transaction will also diversify our lumber
production: when operating to capacity, almost 25% of our
production will be in the U.S. South." - CEO of RFP Yves
Laflamme
    ** Deal consists of three sawmills, with combined production
capacity of 550 mln board feet, located in Cross City (Florida),
Glenwood and El Dorado (Arkansas) - RFP
    ** Including session's gains, RFP down ~49% and CFF.TO down
~59%, YTD

 (Reporting by Shanti S Nair in Bengaluru)
 ((ShantiS.Nair@thomsonreuters.com))