The acquisition of Catalyst Paper Corporation (CPC) by India-based Kejriwal Group International (KGI) has taken another step forward.
The majority shareholders have entered into a support agreement with KGI and details have been filed with the US Securities and Exchange Commission.
Although the acquisition remains potential, if the deal is completed KGI will purchase all 79 per cent of CPC shares controlled by the majority shareholders and all common shares held by minority shareholders would be acquired for $6 Canadian per share.
The principal shareholders have agreed to the takeover, according to a Catalyst media release.
The agreement commits KGI to moving forward with its takeover of CPC on the price and timetable agreed to, subject to conditions, and is expected to be completed by November 30, according to the release.
Takeover discussions and agreements to this point have only been between KGI and the majority shareholders. Catalyst’s board of directors has not entered into any talks but, according to a Catalyst spokesperson, it “is encouraged by KGI’s proposal.”
It is not yet known how the potential acquisition will affect Powell River’s mill.
