Weyerhaeuser to Combine Fine Paper Business With Domtar

Under the terms of the agreement, Weyerhaeuser will distribute ownership of the Fine Paper business and related assets to Weyerhaeuser shareholders in either a spin-off or split-off transaction. Weyerhaeuser will determine which approach it will take prior to closing the transaction. A spin-off would involve a pro-rata distribution of shares to Weyerhaeuser shareholders. A split-off would provide Weyerhaeuser shareholders the option to elect to exchange Weyerhaeuser shares for stock in the “new Domtar.” Regardless of the method, upon closing of the merger former Weyerhaeuser shareholders will own 55 percent of the “new Domtar.” Former Domtar shareholders will own 45 percent of the new company.