Pulp & Paper News

Spicers provides update on proposed transaction to simplify its capital structure

VICTORIA, Australia , April 21, 2017 (Press Release) - 

Spicers Limited (“Spicers”) refers to its announcement dated 20 December 2016 in relation to entering a binding Implementation Agreement (“Agreement”) with The Trust Company (RE Services) Limited (the “RE”), the Responsible Entity of the PaperlinX SPS Trust (“SPS”). Under this Agreement a scheme of arrangement (the “Trust Scheme”) will be proposed by the RE to eligible SPS unitholders for all PaperlinX Step-Up Preference Securities not held by Spicers (“SPS Units”) to be transferred to Spicers in exchange for 545 Spicers ordinary shares per SPS Unit. Spicers will also seek ordinary shareholder approval to issue the ordinary Shares to SPS unitholders under the terms of the Trust Scheme. These two key steps under the Agreement are collectively referred to as the “Proposed Transaction”. The Proposed Transaction is on the same terms as announced on 20 December 2016.

Spicers is pleased to announce that the drafting and regulatory reviews of the Shareholder and Trust Scheme meeting materials are now substantially complete and a NSW Supreme Court hearing date of 3rd May 2017 has been allocated for judicial advice in relation to the Trust Scheme. Copies of Shareholder and Trust Scheme meeting materials will be announced on the ASX by Spicers and the RE respectively shortly after this date, and then subsequently despatched to Spicers shareholders and SPS unitholders. The respective Shareholder and Trust Scheme Meetings are now scheduled to be held on 14 June 2017. Assuming the necessary approvals are obtained, the implementation date for the Trust Scheme is anticipated to be 27 June 2017. An updated timetable for the Proposed Transaction is included in the Appendix to this announcement.

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