Controlling stake in Madawaska mill for sale
Brookfield Asset Management is seeking a buyer for its 51% stake in Twin Rivers Paper Co., which operates paper mills in Madawaska and Edmundston, New Brunswick.
Dan Whyte, senior vice president at Brookfield, said Brookfield has discussed selling its stake with several companies, but would not disclose their names or an asking price for the controlling share, the Bangor Daily News reported. The buyer could also seek to purchase the entire company if a deal could be struck with minority shareholders, according to Whyte. He told the BDN that the company is stable but "not a big money maker."
During bankruptcy proceedings, Fraser sold its specialty paper business in April 2010 to Twin Rivers, with Brookfield Asset Management as the majority owner. The New Brunswick government owns a minority share in the company and acts as a general partner and creditor following a debt-for-equity deal struck as part of the bankruptcy process.
The sale of the ownership stake will not affect the day-to-day operations of the company, which currently employs around 1,200 employees at its operations in the United States and Canada, including a sawmill in Plaster Rock, New Brunswick.
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