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Tembec to sell $16.5M in hydro-electric generating assets to Gemini-SRF Power

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Tembec to sell $16.5M in hydro-electric generating assets to Gemini-SRF Power

March 29, 2011 - 06:14
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TEMISCAMING, QC, March 29, 2011 (CNW) -Tembec today announced that it has closed the sale of its hydro-electric generating assets located in Smooth Rock Falls, Ontario, to Gemini-SRF Power Corporation.

Total consideration for the hydro assets, which have a capacity of approximately 7.4 megawatts, is $16.5 million.

"This transaction is consistent with the Company's strategic plan and represents an attractive valuation for the assets," stated James Lopez, President and CEO of Tembec. "It provides the opportunity to redeploy capital to establish superior returns for our shareholders or further enhance our liquidity."

As a result of the sale, Tembec will record a gain of approximately $3 million in its June 2011 fiscal quarter financial results.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT.

Gemini-SRF Power Corporation is a subsidiary of Gemini Power Corp., a privately-owned, Ontario-based, renewable power generation corporation focused on developing a portfolio of sustainable power generation, renewable energy resources and related power assets.