MONTREAL – Forestry company Tembec Inc. says it has reached an agreement to sell about 49,500 hectares of land in the East Kootenay region of British Columbia to Jemi Fibre Corp. in a deal worth at least $37.1 million.
Jemi will pay the Montreal-based company $35 million plus at least $2.1 million in deferred payments over seven years in connection with the resale of a portion of the land.
Tembec (TSX:TMB) will sell the land to Jemi in two phases —17,700 hectares in June for $15 million, and 31,800 hectares for $20 million in September — subject to the buyer obtaining financing.
The company hopes to sell up to $70 million worth of land in British Columbia by December, $5 million less than previously forecast.
It has realized $23.2 million of sales to date, which could rise to $60.3 million including the $2.1 million deferred payments once the Jemi deal is completed.
The company still has 7,433 hectares of land in B.C. it is seeking to sell.
Tembec is a manufacturer of lumber, pulp, paper and specialty cellulose with 3,500 employees at operations in Canada and France.