SAINT-LEONARD, QC, May 26 /PRNewswire-FirstCall/ -- On March 1, 2006 Jolina Capital Inc. ("Jolina") launched an offer to purchase all the Company's issued and outstanding subordinate voting shares, including the subordinate voting shares resulting from the conversion of the multiple voting shares, options and other rights (the "Shares"), at $0.35 per Share (the "Offer"). On April 7, 2006, Jolina announced the successful completion of its Offer. With a view to acquire 90% of outstanding Shares, except those previously held by Jolina, Jolina extended its Offer for a first time until April 24, 2006, for a second time until May 10, 2006, and for a third time until May 26, 2006. As of May 26, 2006 Jolina announced that it controlled a sufficient number of Shares to proceed with a compulsory acquisition.
On May 10, 2006 Jolina had announced that, given it did not control enough Shares to proceed with a compulsory acquisition, it intended to proceed with a going private transaction by way of a consolidation. In that respect, a special and annual meeting of the shareholders of Arbec, to be held on June 27, 2006, was called by the Company. However, given that Jolina has now acquired a sufficient number of Shares to proceed with a compulsory acquisition, the Company has announced that such meeting will not be held.
Upon completion of the compulsory acquisition by Jolina, the Company intends to de-list its shares from the Toronto Stock Exchange and to apply to securities regulatory authorities to cease to be a reporting issuer.
Arbec Forest Products Inc. manufactures softwood lumber and owns a pulp mill now rented by virtue of a long-term agreement. The Company carries on business through mills located in Port-Cartier and in the Peribonka area. The Company's subordinate voting shares are listed on the Toronto Stock Exchange under the trading symbol ABR.SV.A.
This press release contains forward-looking statements. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives, our strategies or future actions, our targets, expectations for our financial condition or share price, and the results of or outlook for our operations. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. We caution you not to place undue reliance on our forward-looking statements, as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. For a description of risks that could cause our actual results to differ materially from current expectations, please refer to the section entitled "Risk Factors" contained in our Annual Information Form for the year ended December 31, 2005, filed with the Canadian securities regulatory authorities (available on SEDAR at http://www.sedar.com/). Investors and others should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.
