Tembec will sell 50% of Temrex Forest Products

Tembec today concluded an agreement to sell its 50% equity interest in Temrex Forest Products LP and its general partner Gestion PFT Inc., (collectively “Temrex”) to Société générale de financement du Québec (the “SGF”) for $12 million.

The sale is subject to certain conditions. The final proceeds are subject to adjustment for normal working capital and certain other items. Closing of the transaction is anticipated to occur by the end of September. Temrex has been operated as a sawmilling joint venture with the SGF in Quebec’s Gaspé region since 2002.

The sale of Tembec’s interest is part of the Company’s initiatives to generate approximately $100 million of incremental liquidity. Including this sale, approximately $26 million will have been achieved since the initiatives were first announced in April 2009.

As a result of the sale, Tembec will record a gain of approximately $6 million in its September 2009 quarterly financial statements.

Source: Tembec