OTCPK:TMBMF - Post by User
Post by
gavitronon Nov 30, 2011 4:08am
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Post# 19277489
Selling Assets/Raising Capital?
Selling Assets/Raising Capital?Check the news feed for info. Pending sale of Tembecs 2 interior BC lumber mills to Canfor for just shy of $60mil with an agreement that the mills will supply fiber long term to Tembecs nearby pulp mill. Tembec also sold its hardwood flooring business for $13mil a couple weeks ago.
Tembec has stated that they are focusing on their core businesses which apparently include wood so I'm a little lost as to why they would sell lumber mills. I believe the original intention of purchasing the mills had more to do with aquiring the pulp side of it and having the mills supported that. Lumber has been a sore spot for the past few years so personally I believe its a good move...gain capital from mills that are losing but manage to keep the pulp mill and fiber supply.
I've been thinking a lot about why Tembec is making this big push to sell assets. I don't think they were hard up for cash so I'm wondering if they are planning to make other aquisitions. Since they have said they are focussing on core businesses could they be looking at some of the struggling and CHEAP pulp and paper companies or atleast their assets? Catalyst Paper is hard up in the west. Eacom Timber is hanging on for dear life in the east. Fibrek has an offer on the table from someone else. Just my thoughts.