Business News

Domtar announces proposal for reverse stock split

Thursday 12. March 2009 - Domtar Corporation announced today that its Board of Directors has approved a proposal to effect a reverse stock split of the Company's outstanding common stock (NYSE/TSX: UFS) and a corresponding reverse split of the outstanding exchangeable shares issued by the Company's indirect subsidiary, Domtar (Canada) Paper Inc. (TSX: UFX).

The proposal calls to authorize the Board to effect, at its discretion, a reverse stock split by a ratio of 1-for-12, 1-for-15 or 1-for-18 shares. The proposal is outlined in the Company’s preliminary proxy statement filed today with the Securities and Exchange Commission and Canadian securities regulators. It will be submitted to a vote by stockholders at the Company’s annual meeting on May 29, 2009. The reverse stock split is also subject to certain customary regulatory approvals.