MONTREAL, May 22, 2012 /CNW Telbec/ - AbitibiBowater Inc., doing
business as Resolute Forest Products (NYSE: ABH) (TSX: ABH), today
announced that its Board of Directors has authorized the repurchase of
up to 10% of the Company's common stock for an aggregate purchase price
of up to US$100 million. The repurchase program will be funded using
the Company's available cash.
"We are taking advantage of our strong financial position to act on an
attractive opportunity to return cash to shareholders," said Richard
Garneau, President and Chief Executive Officer. "The Company will
continue to manage its capital with the utmost discipline, carefully
balancing initiatives to return cash to shareholders with other
considerations, such as pursuing sound capital investments and
opportunities to further increase Resolute's earnings power. We are
committed to enhancing shareholder value in the long term."
The Company is authorized to repurchase from time to time shares of its
outstanding common stock on the open market or in privately negotiated
transactions in the United States. The timing and amount of stock
repurchases will depend on a variety of factors, including the market
conditions as well as corporate and regulatory considerations. The
share repurchase program may be suspended, modified or discontinued at
any time and the Company has no obligation to repurchase any amount of
its common stock under the program. The repurchase program has no set
expiration date. The company intends to make all repurchases in
compliance with applicable regulatory guidelines and to administer the
plan in accordance with applicable laws, including Rule 10b-18 of the
Securities Exchange Act of 1934, as amended.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products
industry with a diverse range of products, including newsprint,
commercial printing papers, market pulp and wood products. The Company
owns or operates 21 pulp and paper mills and 23 wood products
facilities in the United States, Canada and South Korea. Marketing its
products in more than 90 countries, Resolute has third-party certified
100% of its managed woodlands to sustainable forest management
standards. The shares of Resolute Forest Products, formerly doing
business as AbitibiBowater, trade under the stock symbol ABH on both
the New York Stock Exchange and the Toronto Stock Exchange.
Resolute and other member companies of the Forest Products Association
of Canada, as well as a number of environmental organizations, are
partners in the Canadian Boreal Forest Agreement.