(NYSE: UFS) (TSX: UFS)
MONTREAL, May 30, 2014 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced that in accordance with the applicable rules of the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE"), the "due bill" trading procedures of such stock exchanges will apply to Domtar's previously announced two-for-one stock split, which will take the form of a stock dividend whereby shareholders will receive one additional common share for each common share held. Shareholders on the record date of June 10, 2014 will be entitled to receive one additional share for every share they own on that date. As a result of the stock split, total shares of Company common stock outstanding will increase from approximately 32.5 million to 65 million.
A "due bill" is an entitlement attached to listed securities undergoing a corporate action, such as a share split. In this instance, the entitlement is to the share dividend. The common shares will trade on a "due bill" basis from two trading days prior to the record date (i.e., June 6, 2014) to the payment date (being June 17, 2014), inclusively (the "due bill period"). Any trades that are executed on the TSX or the NYSE during this period will be identified to ensure purchasers of Domtar's common shares receive the entitlement to the share dividend.
The common shares will commence trading on an "ex-dividend" basis on June 18, 2014, as of which date purchases of Domtar's common shares will no longer have an attaching entitlement to a stock dividend payment. The due bill redemption date will be June 20, 2014.
Shareholders do not need to take any action. Domtar's transfer agent will send to registered shareholders an advice under the direct registration system indicating the number of additional shares that they receive as a result of the stock split. These additional shares will be held in book entry form and registered electronically in the transfer agent's recordkeeping system, unless a physical share certificate is requested by the registered shareholder. Beneficial owners with common shares held through a brokerage account will have their accounts automatically updated to reflect the share split.
As previously announced, the Company's subsidiary Domtar (Canada) Paper Inc. (TSX: UFX) will redeem all of its outstanding exchangeable shares on or about June 2, 2014. As a result, the exchangeable shares will cease to be outstanding and the shares of Company common stock issued in exchange for the exchangeable shares will participate in the 2-for-1 stock split and all these shares will be entitled to receive the quarterly dividend.
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a broad line of incontinence care products marketed primarily under the Attends®, IncoPack and Indasec® brand names as well as baby diapers. In 2013, Domtar had sales of US$5.4 billion from some 50 countries. The Company employs approximately 10,000 people. To learn more, visit www.domtar.com.
Statements in this release about our plans, expectations and future performance, including the statements by Mr. Williams and those contained under "Outlook," are "forward-looking statements." Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under "Risk Factors" in our Form 10-K for 2013 as filed with the SEC and as updated by subsequently filed Form 10-Qs. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.
SOURCE Domtar Corporation