Norbord, Ainsworth Lumber plan to combine businesses
Brookfield Asset Management, a majority shareholder in each company, will own 53% of the combined firm.
TORONTO — Two Canadian wood product companies – Norbord Inc. and Ainsworth Lumber Corp. – plan to combine their businesses through a $759-million deal to create one of the world’s largest producers of oriented strand board (OSB).
OSB is a type of wood panel used for building homes and for industrial construction.
Brookfield Asset Management is majority shareholder of each company and will own about 53% of the combined company’s outstanding equity.
The deal will involve Toronto-based Norbord buying Vancouver-based Ainsworth Lumber in exchange for shares currently worth about $759 million.
Brookfield and its affiliates control about 55% of Ainsworth stock and 52% of Norbord shares. It has comitted to vote in favour of the transaction.
© 2014 The Canadian Press