|By Marketwired .||
|August 8, 2013 06:38 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/08/13 -- INTERNATIONAL FOREST PRODUCTS LIMITED ("Interfor" or the "Company") (TSX:IFP.A) announced today that its controlling shareholder, Sauder Industries Limited ("SIL"), has given formal notice of its intention to exercise its right under the Company's Articles to exchange its Class "B" Common Shares, often referred to as the Multiple Voting Shares ("MVS"), for Class "A" Subordinate Voting Shares ("Class "A" Shares") on a share for share basis, without any cash or non-cash consideration. The exchange will take place on August 23, 2013 or soon thereafter.
Interfor has been further informed by SIL that it intends to distribute substantially all of its Class "A" Shares, including those owned prior to the exchange, to its individual shareholders following the exchange.
In delivering the notice, Lawrence Sauder, SIL's Chairman & CEO said, "The exchange and distribution transactions are related to internal financial planning considerations, and should not be viewed in any way as a reflection of SIL's view of the Company or the outlook for its business. I intend to remain as Chairman (of Interfor's Board of Directors), and have every confidence in the future of the Company."
In accepting the notice from SIL, Interfor's President & CEO, Duncan Davies, said, "The Sauder family have been tremendous supporters of Interfor since its inception and I don't see any reason for that to change following this announcement. The exchange of the MVS brings Interfor's share structure into line with modern governance practice and should be viewed positively by all concerned."
As a result of the exchange by SIL, all remaining MVS will automatically convert to Class "A" Shares. Thereafter, Interfor will effectively have one class of common shares with a total of 55,862,955 Class "A" Shares outstanding.
This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will" and "is expected" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates, and other factors referenced herein and in Interfor's Annual Report and Management Information Circular available on www.sedar.com. The forward-looking information and statements contained in this report are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.
Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of more than 2.2 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.
International Forest Products Limited
John A. Horning
Senior Vice President and Chief Financial Officer