Western Forest Products Enters Agreement on Sale of Ownership Interest

SEATTLE (Scrap Monster): Western Forest Products, Inc. (WFP) announced that it has reached an agreement with Huu-ay-aht First Nations, whereby the latter will acquire 7% interest from WFP in a newly formed Limited Partnership for $7.2 million. The transaction is subject to closing adjustments, WFP press release noted. The agreement also allows WFP to sell incremental interest in the Limited Partnership to Huu-ay-aht, further to negotiations between the two parties.

According to WFP, the company will continue to source fibre from the Limited Partnership assets to support its B.C. manufacturing facilities. The agreement will cover some of WFP’s assets in its Port of Alberni Forest Operation, including TFL 44, which covers roughly 232,000 hectares of land on west central Vancouver Island in the vicinity of Alberni Inlet and Great Central Lake. The closing of the transaction is subject to approvals by the provincial government and Huu-ay-aht People’s Assembly.

Don Demens, President and CEO, WFP stated that the sale will result in increasing First nations participation in the forest sector, which in turn may benefit the Nation, local communities, the company and its employees. Meantime, Robert J. Dennis Sr., Chief Councillor, Huu-ay-aht expressed excitement on the announcement and stated its willingness to explore further opportunities with Western, potentially involving other First Nations.

The transaction is expected to be completed in Q1 next year.