Mar 01, 2006. /Lesprom Network/. Tembec Inc. announced on Tuesday, February 27 that it has successfully completed the sale of its oriented strand board (OSB) business located in Saint-Georges-de-Champlain, Quebec to Jolina Capital Inc. for total consideration of $98 million, of which $88 million relates to the closing and the balance is payable in the form of a $10 million interest-bearing note, repayable in equal annual installments over a five-year period. “The terms of the transaction and the ability of Jolina to provide timely closing were key for Tembec. It is a good transaction for both parties,” said Tembec president and chief executive officer James Lopez. “This transaction is consistent with an earlier announced plan aimed at generating between $100 and $150 million of additional liquidity through the monetization of non-core assets and other cash generation initiatives.” Mr. Lopez concluded by wishing all employees at the Saint-Georges site the very best in the future. “The team at the Saint-Georges-de-Champlain site have been solid performers since Tembec’s acquisition of that business in 1995. We thank them for their dedicated service and wish both them and Jolina nothing but the best in the future,” said Mr. Lopez. As a result of this transaction, the company will record a gain of $63.5 million in the quarter ending March 25, 2006. The after tax effect will be $47.2 million or $0.55 per share. Tembec is a large, diversified and integrated forest products company. With operations principally located in North America and in France, the company employs approximately 10 000 people.