By Lisa Kerner
Charlotte, N.C., Feb. 5 - Brookfield Asset Management Inc. said it agreed to acquire all the outstanding shares of Longview Fibre Co. for $24.75 per share cash, according to a company news release.
The transaction, worth an estimated $2.15 billion including assumed debt, is expected to close in the second quarter of 2007.
Brookfield said it will fund the acquisition through $1.35 billion of debt financing secured by the existing assets of Longview. The company currently holds about 3 million shares, or 4.6%, of Longview's outstanding shares.
"Longview Fibre represents an excellent opportunity to acquire one of the largest and highest quality portfolios of freehold timberlands in the United States., furthering our strategy of investing in high quality assets that generate long term sustainable cash flows that increase in value over time," Brookfield managing partner Sam Pollock said in the release.
"After a competitive process and an examination of a wide range of alternatives, we believe this is the best alternative for our shareholders," Longview president and chief executive officer Richard H. Wollenberg said in the release.
Brookfield plans to operate the specialty paper and packaging business under the Longview Fibre name.
Longview is a real estate investment trust based in Longview, Wash.
Brookfield is a publicly owned asset management holding company located in Calgary, Alta.
| Acquirer: | Brookfield Asset Management Inc.
|
| Target: | Longview Fibre Co.
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| Payment per share: | $24.75 per share
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| Announcement date: | Feb. 5
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | NYSE: LFB; $21.01 on Feb. 2
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