UPM-Kymmene

Helsinki, Finland-based UPM-Kymmene announced on August 29, 2000 that it has signed an acquisition agreement with Repap Enterprises Inc., which owns a state of the art coated paper production complex in New Brunswick, under which UPM-Kymmene is proposing to pay $160 million or $0.20 a share to acquire Repap. In addition, by acquiring Repap, UPM-Kymmene will be assuming more than $1.1 billion of Repap’s debt.

The acquisition will make UPM-Kymmene a major coated paper producer in North America. The transaction is subject to the approval of 2/3 of the votes cast by Repap shareholders at a shareholders’ meeting to approve the transaction. The transaction is expected to be completed in mid-October, 2000.

Osler, Hoskin & Harcourt LLP in Toronto is acting for UPM-Kymmene with a team that includes Dale Ponder, Don Ross, David Tetreault, Peter Glossop, Desmond Lee, Heather Brown and Laurie Arron. Stikeman Elliott in Montreal is representing Repap Enterprises Inc. with a team led by Pierre Raymond.