ABH (TSX, NYSE) $ US
MONTREAL, April 10 /PRNewswire-FirstCall/ - AbitibiBowater today announced that it has completed the sale of its Snowflake, Arizona, assets for a purchase price of $161 million to a subsidiary of Catalyst Paper Corporation (TSX: CTL). The facility has an annual production capacity of approximately 375,000 tonnes of newsprint.
This sale was approved by the U.S. Department of Justice in order to comply with the requirements set for approval of the Abitibi-Consolidated/Bowater combination. AbitibiBowater plans to use the proceeds from this sale for general corporate purposes.
AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. Marketing its products in more than 90 countries, AbitibiBowater is also among the world's largest recyclers of newspapers and magazines, and has more third-party certified sustainable forest land than any other company in the world. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.
Forward-Looking Statements
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Statements in this news release that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements about our planned use of proceeds from the sale of the Snowflake mill. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "plans", "will", "could", "expect", "believe", "anticipate", and other terms with similar meaning indicating possible future events or actions or potential impact on the business or stockholders of AbitibiBowater. These forward-looking statements are not guarantees of future performance. They are based on management's assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations are listed from time to time in AbitibiBowater's filings with the Securities and Exchange Commission and the Canadian securities regulatory authorities, including those factors contained in the Company's Annual Report on Form 10-K for the year-ended December 31, 2007, and the Company's registration statement on Form S-3 filed on October 29, 2007, under the caption "Risk Factors". All forward-looking statements in this news release are expressly qualified by information contained in the Company's filings with the Securities and Exchange Commission and the Canadian securities regulatory authorities. AbitibiBowater disclaims any obligation to update or revise these forward-looking statements.
SOURCE ABITIBIBOWATER INC. - ENGLISH
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