Norske Skog Canada Limited (formerly known as Fletcher Challenge Canada Limited) announced on March 25, 2001 that it has agreed to acquire Pacifica Papers Inc. in a shares and cash transaction valued at $905 million. The acquisition of Pacifica’s two pulp and paper mills will give Norske Skog Canada four mills on the south coast of British Columbia, all located within a 160 km radius. Norske Skog Canada also announced a special distribution of $1.5 billion ($12 per share) to its existing common shareholders. Both transactions will be implemented pursuant to separate plans of arrangement. Norske Skog Canada has arranged committed financing facilities of $1 billion to fund the acquisition of Pacifica and the Norske Canada special distribution.
Norske Skog Canada was represented by Lawson Lundell Lawson & McIntosh and by Goodmans LLP. The Lawson Lundell team was led by David Smith and Gordon Chambers (corporate), Irv Laskin (banking) and Reinhold Krahn (tax). Bill Rosenfeld (competition), Neil Harris, Mitchell Sherman and Jon Northup (tax) led the Goodmans team. Pacifica was represented by a team from Sangra, Moller led by Harjit Sangra and Winston Yee. Norske Skogindustrier ASA, which currently holds a 50.8 majority interest in Norske Skog Canada, was advised by Mitchell Gropper, Q.C., of Farris, Vaughan, Wills & Murphy.