Western Forest Products to sell ownership interest in Port Alberni forest operation to Huu-ay-aht First Nations
December 20, 2018
BRITISH COLUMBIA (News release) -- Huu-ay-aht First Nations and Western Forest Products Inc. ("Western") have reached an agreement whereby Huu-ay-aht will acquire a 7% interest from Western in a newly formed Limited Partnership for $7.2 million, subject to closing adjustments.
The assets of the Limited Partnership will consist of certain Western assets in its Port Alberni Forest Operation, including TFL 44 and other associated assets and liabilities. The completion of the transaction is subject to satisfaction of customary closing conditions, approval by the B.C. Provincial Government and Huu-ay-aht People's Assembly, and is expected to close in the 1Q 2019. As part of the agreement announced today, Western may sell Huu-ay-aht an incremental interest in the Limited Partnership subject to further negotiation.
This announcement is consistent with the goals of the parties' March 2018 Reconciliation Protocol Agreement. Western will continue to source fibre from the Limited Partnership assets to support its B.C. manufacturing facilities.