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Research Alert: CFRA Maintains Hold Opinion On Shares Of Domtar Corporation

05/11/2021 06:10

10:05 AM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $6 to $55, which is equal to the acquisition price offered by Paper Excellence, a private company based in Richmond, B.C. The two companies have entered into an agreement under which Paper Excellence will acquire all outstanding shares of Domtar common stock for $55.50 per share, in cash. The purchase price represents a 37% premium to UFS's closing share price on May 3, 2021, which is the last trading day prior to UFS's statement responding to media reports regarding a potential deal with Paper Excellence. It is also a 44% premium to the 30-day volume-weighted average price as of May 3, 2021. This transaction values UFS's enterprise value at $3.0 billion. Paper Excellence intends to continue the operations of Domtar as a stand-alone business entity and will continue to be led by Domtar's management team. The deal is expected to close in the second half of '21, subject to UFS shareholder approval and regulatory approvals.