Brookfield PE generates $91 mln from sale of WEF shares

The private equity group of Toronto-based Brookfield Asset Management has completed its previously-announced secondary offering of part of its investment in Western Forest Products Inc (TSX: WEF), a woodland operator and lumber producer. After selling a mix of non-voting and common shares at a price of $1.98 per share, Brookfield generated aggregate gross proceeds of over $91 million. With the close of the secondary transaction, Brookfield continued to hold 42% of issued and outstanding common shares in the business. The Vancouver-based Western Forest Products was established in 2004 as a result of Brookfield’s acquisition of the bankrupt Doman Industries Ltd.


Western Forest Products Announces Closing of the Secondary Offering


Western Forest Products Inc. (TSX:WEF) (“Western” or the “Company”) and Brookfield Special Situations Management Limited (“Brookfield”), a wholly-owned subsidiary of Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM), today announced that they have closed the previously announced bought deal secondary offering, through which Brookfield sold 39,050,597 non-voting shares and 6,949,403 common shares of the Company (the “Offered Shares”) at an offering price of $1.98 per Offered Share (the “Offering”) for aggregate gross proceeds to Brookfield of C$91,080,000.

The Offering was conducted by Scotiabank, CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., Raymond James Ltd., BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., MGI Securities Inc. and Salman Partners Inc. (collectively, the “Underwriters”). Closing of the Offering included the full exercise of the over-allotment option granted to the Underwriters.

On closing of the Offering, all non-voting shares forming part of the Offered Shares were converted, on a one-for-one basis, into common shares of Western (“Common Shares”), representing approximately 10% of the issued and outstanding Common Shares on a non-diluted basis after giving effect to the Offering.

Following completion of the Offering, Brookfield holds no non-voting shares and 163,012,474 Common Shares, representing approximately 42% of the issued and outstanding Common Shares of Western on a non-diluted basis.

The Offered Shares were offered by way of a short form prospectus filed in all of the provinces of Canada pursuant to National Instrument 44-101 – Short Form Prospectus Distributions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction in which such offer, sale or solicitation would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

Western Forest Products

Western is an integrated Canadian forest products company and the largest coastal British Columbia woodland operator and lumber producer with an annual available harvest of approximately 6.4 million cubic metres of timber of which approximately 6.2 million cubic metres is from Crown lands and lumber capacity in excess of 1.1 billion board feet from eight sawmills and three remanufacturing plants. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and by-products and value-added remanufacturing. Substantially all of Western’s operations, employees and corporate facilities are located in the coastal region of British Columbia while its products are sold in over 25 countries worldwide.

Forward Looking Statements

This press release contains statements which constitute forward-looking statements and forward-looking information within the meaning of applicable securities laws. Those statements and information appear in a number of places in this document and include statements and information regarding our current intent, belief or expectations primarily with respect to market and general economic conditions, future costs, expenditures, available harvest levels and our future operating performance, objectives and strategies. Such statements and information may be indicated by words such as “estimate”, “expect”, “anticipate”, “plan”, “intend”, “believe”, “should”, “may” and similar words and phrases. Readers are cautioned that it would be unreasonable to rely on any such forward-looking statements and information as creating any legal rights, and that the statements and information are not guarantees and may involve known and unknown risks and uncertainties, and that actual results and objectives and strategies may differ or change from those expressed or implied in the forward-looking statements or information as a result of various factors. Such risks and uncertainties include, among others: general economic conditions, competition and selling prices, changes in foreign currency exchange rates, labour disruptions, natural disasters, relations with First Nations groups, changes in laws, regulations or public policy, misjudgements in the course of preparing forward-looking statements or information, changes in opportunities and other factors referenced under the “Risks and Uncertainties” section of our MD&A in our 2012 Annual Report dated February 21, 2013. All written and oral forward-looking statements or information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Except as required by law, Western does not expect to update forward-looking statements or information as conditions change.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Western Forest Products Inc.

Brian Cairo

CFO & Corporate Secretary

(250) 734-4710

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