EACOM and Kelso have entered into a support agreement in connection with the Offer. The Offer represents a premium of 46.2% to EACOM’s closing share price of C$0.26 on the TSX Venture Exchange on March 21, 2013 and a premium of 63.7% to the VWAP of the EACOM common shares for the 30-day period ending on that date.
“We are pleased with Kelso’s offer, which recognizes the Company’s inherent value. Kelso is extremely well capitalized and is in a position to provide the capital to implement EACOM's long term growth and mill modernization plan. We believe that the Offer is in the best interests of the Company and its stakeholders, including its shareholders and employees“, said Terry Lyons, Chair of the Special Committee of the Board of Directors of EACOM.
The Special Committee of the Board of Directors of EACOM, following review of the terms and conditions of the Offer and consideration of a number of factors unanimously recommended the Offer to EACOM’s Board of Directors.
The business activities of EACOM Timber Corporation consist of the manufacturing, marketing and distribution of lumber, wood chips and woodbased value-added products, and the management of forest resources. EACOM owns eight sawmills, all located in Eastern Canada, and related tenures.
Kelso & Company is one of the oldest and most established firms specializing in private equity.
