RE:When will Interfor fire its CEO, Ian Filinger?From CIBC:
Interfor Exiting Quebec IFP Announces Sale Of Two Sawmills And Remanufacturing Plant Impact:
We view the deal slightly positively given Interfor’s recent balance sheet risks.
The transaction reduces concerns that the company may need to issue equity. Interfor To Exit Quebec Operations: On Wednesday morning, Interfor announced it has entered into a definitive agreement to sell its two Quebec sawmills in Val-d’Or and Matagami (combined 255 mmfbm/yr of capacity or ~5% of IFP’s total capacity) as well as its Sullivan remanufacturing plant in Val d’Or to Chantiers Chibougamau, a private Quebec forestry company. As part of Interfor’s exit plan, the company also announced that it intends to permanently close its corporate office in Montreal in the coming months. IFP’s decision to exit its Quebec operations reportedly also reflected restricted availability of economic fiber in the area. The company will focus on its remaining Eastern Canadian sawmills in Ontario and New Brunswick. The transaction is expected to close in Q4/24 and is subject to customary conditions, including regulatory approvals. IFP plans to take an impairment charge in Q3/24 in relation to the sale. Assets Sold At A Steep Discount: IFP is receiving C$30MM (~$22MM) for its Quebec manufacturing facilities. Additionally, IFP and Chantiers Chibougamau will enter into a multi-year supply contract for lumber to Interfor’s I-Joist plant in Ontario. The sale does not include any of Interfor’s duties on deposit ($56MM as of June 30, excluding any interest) related to the facilities. The deal valuation of $85/mfbm (~C$118/mfbm) represents a fraction of the ~$400/mfbm IFP paid for the broader EACOM Timber portfolio in November 2021. The valuation is also well below what IFP paid for its ~16% stake in GreenFirst FP in May 2022 (~$455/mfbm excluding the Kenora asset), as well as what the same counterparty here (Chantiers Chibougamau) paid for two Quebec sawmills from GreenFirst in December 2022 (~$270/mfbm).
NEW MANGEMENT AT INTERFOR IS IN ORDER