Domtar (UFS) to Repurchase Shares of Common Stock Through $200M Accelerated Buyback

March 2, 2021 6:51 AM EST

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Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced that it has entered into an accelerated share repurchase (“ASR”) agreement with JPMorgan Chase Bank, N.A. to repurchase $200 million of its common stock with available cash on hand.

Under the ASR agreement, the Company will pay $200 million in exchange for an initial delivery of 4,430,906 shares. The final number of shares to be repurchased by Domtar will be based on the average of the daily volume-weighted average stock prices of Domtar’s common stock during the valuation period of the agreement, less a discount and subject to adjustments. The resulting adjustments may affect the total amount expended by the Company or the aggregate number of shares it repurchases.

Domtar is funding the share repurchases with cash on hand, including cash received from the divestiture of its Personal Care segment closed on March 1, 2021.

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