RTTNews | May 11, 2021 10:34AM EDT

10:34 Tuesday, May 11, 2021 (RTTNews.com) - Shares of Domtar Corp. (UFS) are gaining over 14% on Tuesday morning after Canadian paper and packaging company Paper Excellence announced a deal to acquire Domtar in an all-cash deal valued at about $3 billion.

UFS is currently trading at $54.05, up $6.67 or 14.08%, on the Nasdaq.

Paper Excellence will acquire Domtar shares for $55.50 per share in cash. The price represents a premium of around 37% to Domtar's closing share price on May 3, 2021, the last trading day prior to the Domtar's statement responding to media reports regarding a potential business combination between Domtar and Paper Excellence.

The transaction is expected to close in the second half of 2021. Domtar will continue its operations as a stand-alone business.

Domtar is one of the largest manufacturer of wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens.

Read the original article on RTTNews ( https://www.rttnews.com/3193840/stock-alert-domtar-jumps-14-after-takeover-deal-with-paper-excellence.aspx)

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