Kelso Has Submitted a Takeover Bid for All Ordinary Shares of The Eacom Timber

The US investment company Kelso has submitted a takeover bid for all ordinary shares of the Canadian lumber producer Eacom Timber. As both companies announced on 22 March, Kelso is offering Eacom shareholders Can$0.38 per share. Eacom has recommended its shareholders to accept the offer. Executive employees and more major shareholders of Eacom have also already agreed to sell their shares to Kelso and, in this connection, have signed a lock-up agreement, excluding the sale to any other interested parties. Approximately 44% of all ordinary shares of Eacom are affected by this agreement. According to Terry Lyons, head of the special committee set up by the company management to evaluate the offer, Kelso has enough capital to implement restructuring and modernisation measures which are planned to take place at Eacom.