Quebecor World Will not Proceed With the Sale of its European Assets
Press release from the issuing company
MONTREAL, December 13 -- Quebecor World Inc. announced today that it will not be proceeding with the sale of its European business to RSDB NV due to the lack of support of the transaction from RSDB's shareholders. As previously announced, the Share Purchase and Implementation Agreement was agreed to by both RSDB's Management and Supervisory Boards but was conditional upon the approval of RSDB's shareholders. Notwithstanding the outcome of today's vote by RSDB's shareholders, Quebecor World continues to believe that the overall terms of the transaction represented fair value for all affected stakeholders. The Company will continue to actively explore its strategic options for its European operations, including consolidation opportunities and other initiatives to enhance value.
"While we believed this transaction represented an important consolidation opportunity for the European industry, our European business remains a leader, with one of the most extensive and technologically advanced pan-European platforms," said Wes Lucas, President and CEO Quebecor World. "Our customers will continue to receive top quality, on-time products and services each and every day as we are fortunate to have some of the most skilled and dedicated people in the industry."
The Company is currently evaluating and implementing a variety of options that should compensate for the sale proceeds that will no longer be realized as a result of this transaction not proceeding, including the implementation of new accounts receivable financing programs in Europe.
Moreover, Quebecor World's management and Board of Directors, together with its independent financial advisor, continue to actively explore and evaluate financing and other alternatives to further strengthen the Company's balance sheet and liquidity. While recent external market conditions have been challenging, the Company's completed retooling and turn-around plan are generating improvements and have contributed to ensuring the Company's continued positive operating cash flow.
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